Question 1

Which of the following budgets or financial statements is part of the operating budget?

Accepted Answer

A) Sales budget 
B) Budgeted balance sheet 
C) Capital expenditures budget 
D) Cash budget 
A) Sales budget 
B) Budgeted balance sheet 
C) Capital expenditures budget 
D) Cash budget

Question 2

The budget committee

Accepted Answer

A) rarely has the final say on the budget. 
B) usually is made up of the accounting staff. 
C) usually is made up of managers from all areas of the value chain. 
D) usually is made up of the Board of Directors. 
A) rarely has the final say on the budget. 
B) usually is made up of the accounting staff. 
C) usually is made up of managers from all areas of the value chain. 
D) usually is made up of the Board of Directors.

Question 3

Which of the following alternatives reflect the proper order of preparing components of the master budget? 1. Financial budget
2) Operating budget
3) Capital expenditures budget

Accepted Answer

A) 1, 3, 2 
B) 2, 3, 1 
C) 1, 2, 3 
D) 3, 1, 2 
A) 1, 3, 2 
B) 2, 3, 1 
C) 1, 2, 3 
D) 3, 1, 2

Question 4

List the operating budgets in order of use and describe the purpose of each budget on the list below Describe the relationship between each budget.

Accepted Answer

The operating budgets are as follows:
1.

Question 5

Which of the following should the organization use to initiate a budget?

Accepted Answer

A) Last year's budget 
B) Last year's actual amounts 
C) Zero-based budgeting 
D) Any of the above 
A) Last year's budget 
B) Last year's actual amounts 
C) Zero-based budgeting 
D) Any of the above

Question 6

A company should ________ when projecting cash receipts for a given month.

Accepted Answer

A) include only cash collections from sales made in that month 
B) only list COD sales made in that month 
C) only list credit sales made in that month 
D) include cash to be collected in that month regardless of when the sale was made 
A) include only cash collections from sales made in that month 
B) only list COD sales made in that month 
C) only list credit sales made in that month 
D) include cash to be collected in that month regardless of when the sale was made

Question 7

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows:   Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August?

Accepted Answer

A) 33,800 
B) 49,400 
C) 26,600 
D) 45,200 
A) 33,800 
B) 49,400 
C) 26,600 
D) 45,200

Question 8

Which of the following budgets usually shows separate sections for fixed and variable costs?

Accepted Answer

A) Direct materials and manufacturing overhead budget 
B) Manufacturing overhead budget and production budget 
C) Production budget and manufacturing overhead budget 
D) Operating expenses budget and manufacturing overhead budget 
A) Direct materials and manufacturing overhead budget 
B) Manufacturing overhead budget and production budget 
C) Production budget and manufacturing overhead budget 
D) Operating expenses budget and manufacturing overhead budget

Question 9

SportSupplies Corporation has budgeted purchases of inventory for December of $266,400. Expected beginning inventory on December 1 and ending inventory on December 31 are $50,000 and $180,000, respectively. If cost of goods sold averages 88% of sales, what are budgeted sales for December?

Accepted Answer

A) $155,000 
B) $120,032 
C) $450,455 
D) $564,091 
A) $155,000 
B) $120,032 
C) $450,455 
D) $564,091

Question 10

Define operating budgets and financial budgets. List the specific budgets which are operating budgets. List the specific budgets which are financial budgets.

Accepted Answer

Operating budgets:
1. sales budget
2. pr

Question 11

The sales budget is the cornerstone of the master budget.

Accepted Answer

A) True 
 B)False

Question 12

Terrific Toys Company manufactures and sells children's skateboards. Each skateboard requires four bearings. For September, Terrific Toys Company has budgeted skateboard sales of 540 skateboards, while 600 skateboards are scheduled to be produced. Terrific Toys Company will begin September with 200 bearings in its beginning inventory, and estimates ending inventory for September to be 440 bearings. How many bearings should Terrific Toys Company purchase in September?

Accepted Answer

A) 340 
B) 2400 
C) 2600 
D) 2640 
A) 340 
B) 2400 
C) 2600 
D) 2640

Question 13

Natcher Corporation collects 60% of a month's sales in the month of sale, 30% in the month following sale, and 5% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are:   The amount of cash that will be collected in November is budgeted to be

Accepted Answer

A) $252,000 
B) $218,500 
C) $138,000 
D) $290,500 
A) $252,000 
B) $218,500 
C) $138,000 
D) $290,500

Question 14

CatNap Company has two products: Kittyz and Katz. A March sales forecast projects 15,000 units of Kittyz and 10,000 units of Katz are going to be sold at prices of $15 and $18, respectively. The desired ending inventory of Kittyz is 12% higher than the beginning inventory, which was 2000 units. How much are total March sales for Kittyz anticipated to be?

Accepted Answer

A) $125,000 
B) $180,000 
C) $225,000 
D) $270,000 
A) $125,000 
B) $180,000 
C) $225,000 
D) $270,000

Question 15

A merchandising company has a production budget.

Accepted Answer

A) True 
 B)False

Question 16

Dallas Corporation had beginning inventory of 18,700 units and expects sales of 80,000 units during the year. Desired ending inventory is 19,500 units. How many units should Dallas Corporation produce?

Accepted Answer

A) 80,800 units 
B) 41,800 units 
C) 79,200 units 
D) 118,200 units 
A) 80,800 units 
B) 41,800 units 
C) 79,200 units 
D) 118,200 units

Question 17

The financial budget that a manager prepares at a manufacturing company is different compared to the financial budget that a manager prepares at a merchandising and a service company.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not included in the operating budget?

Accepted Answer

A) Budgeted income statement 
B) Sales budget 
C) Direct labor budget 
D) Budgeted balance sheet 
A) Budgeted income statement 
B) Sales budget 
C) Direct labor budget 
D) Budgeted balance sheet

Question 19

The operating budgets of retailers and manufacturers are virtually identical.

Accepted Answer

A) True 
 B)False

Question 20

A rolling budget is a budget that

Accepted Answer

A) extends 5-10 years into the future. 
B) is continuously updated, so that the next 12 months of operations are always budgeted. 
C) begins with zero for each expense, and then amounts are added in. 
D) is executed by upper management. 
A) extends 5-10 years into the future. 
B) is continuously updated, so that the next 12 months of operations are always budgeted. 
C) begins with zero for each expense, and then amounts are added in. 
D) is executed by upper management.

Which of the following budgets or financial statements is part of the operating budget?

The budget committee

Which of the following alternatives reflect the proper order of preparing components of the master budget? 1. Financial budget 2) Operating budget 3) Capital expenditures budget

List the operating budgets in order of use and describe the purpose of each budget on the list below Describe the relationship between each budget.

Which of the following should the organization use to initiate a budget?

A company should ________ when projecting cash receipts for a given month.

Which of the following budgets usually shows separate sections for fixed and variable costs?

SportSupplies Corporation has budgeted purchases of inventory for December of $266,400. Expected beginning inventory on December 1 and ending inventory on December 31 are $50,000 and $180,000, respectively. If cost of goods sold averages 88% of sales, what are budgeted sales for December?

Define operating budgets and financial budgets. List the specific budgets which are operating budgets. List the specific budgets which are financial budgets.

The sales budget is the cornerstone of the master budget.

A merchandising company has a production budget.

Dallas Corporation had beginning inventory of 18,700 units and expects sales of 80,000 units during the year. Desired ending inventory is 19,500 units. How many units should Dallas Corporation produce?

The financial budget that a manager prepares at a manufacturing company is different compared to the financial budget that a manager prepares at a merchandising and a service company.

Which of the following is not included in the operating budget?

The operating budgets of retailers and manufacturers are virtually identical.

A rolling budget is a budget that

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 9: The Master Budget

Which of the following budgets or financial statements is part of the operating budget?

The budget committee

Which of the following alternatives reflect the proper order of preparing components of the master budget? 1. Financial budget 2) Operating budget 3) Capital expenditures budget

List the operating budgets in order of use and describe the purpose of each budget on the list below Describe the relationship between each budget.

Which of the following should the organization use to initiate a budget?

A company should ________ when projecting cash receipts for a given month.

Which of the following budgets usually shows separate sections for fixed and variable costs?

SportSupplies Corporation has budgeted purchases of inventory for December of $266,400. Expected beginning inventory on December 1 and ending inventory on December 31 are $50,000 and $180,000, respectively. If cost of goods sold averages 88% of sales, what are budgeted sales for December?

Define operating budgets and financial budgets. List the specific budgets which are operating budgets. List the specific budgets which are financial budgets.

The sales budget is the cornerstone of the master budget.

A merchandising company has a production budget.

Dallas Corporation had beginning inventory of 18,700 units and expects sales of 80,000 units during the year. Desired ending inventory is 19,500 units. How many units should Dallas Corporation produce?

The financial budget that a manager prepares at a manufacturing company is different compared to the financial budget that a manager prepares at a merchandising and a service company.

Which of the following is not included in the operating budget?

The operating budgets of retailers and manufacturers are virtually identical.

A rolling budget is a budget that

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters