Exam 9: Budgeting Systems

Zero-based budgeting refers to:

The usual order of steps in preparing a budget is:

Christina Wadat is a sales manager at Walter Booksellers.She believes that the sales revenue will most likely to be $500 000 this coming year.However,she decides to build in budget slack of 10 per cent.The amount of sales revenue she inputs into the company's sales budget:

Which of the following statements is false?

The five primary purposes of a budget are:

Lee's Appliances forecasts the following sales figures for the next four months.Cash sales average 10 per cent of total sales and credit sales are collected 50 per cent in the month of sale and 50 per cent in the month following sale.What is Lee's estimated accounts receivable balance on July 31?

Jasmine Coy is a barista at Tosa Cafe,which is known for its quality coffee.Her manager has set a very difficult cost target.As a result,Jasmine uses lower quality coffee beans which results in poor quality coffee.This is an example of:

Past sales levels and trends,general economic trends,and political and legal events are all used for:

Assume for a firm that budgeted production for July and August is 180 000 and 200 000 units respectively.It takes half a kilogram of direct material to make one unit of finished product.Materials inventory is maintained at 10 per cent of the next month's budgeted production needs.If the 30 June inventory of materials was 5000 kg,how many kilograms of direct material should be purchased during July?

The position where the firm's goals and employees' aims coincide is called:

The typical starting point in the sales forecasting process is generally:

Budgeted financial statements include:

The person responsible for managing the budget process:

Carter Manufacturers have budgeted sales for the coming months as follows.The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales.At 31 December,the company had in finished goods stock 10 000 units.What is budgeted production for the quarter January-March?

EasySleep Inn is a chain of medium-priced hotels.Each year during the budgeting process,the manager of each hotel in the chain has to submit a capital expenditure request,justifying the amounts of expenditure they request.Top management then makes a decision on whether to fund each capital expenditure request.This is an example of which purpose of budgeting?

A production budget:

A budget that includes sales revenue,cost of goods sold,operating expenses and net profit is a:

Which of the following is/are likely to lead to budget acceptance? i.Targets are developed with employee inputs.ii Employees are held responsible for activities that they can control.iii Budget is cascaded down from corporate level to the various responsibility centres.

Which of the following does budget preparation require to achieve optimum outcomes? i.Top-down budgeting ii.Bottom-up budgeting iii.Participative budgeting

For a manufacturing business,a production budget,including budgets for direct material,direct labour and manufacturing overhead are part of the: