FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

Production and sales estimates for June are as follows: The budgeted total sales for June is

A) $225,000
B) $500,000
C) $525,000
D) $200,000

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Budgeting supports the planning process by encouraging all of the following activities except

A) requiring all organizational units to establish their goals for the upcoming period
B) increasing the motivation of managers and employees by providing agreed-upon expectations
C) directing and coordinating operations during the period
D) improving overall decision making by considering all viewpoints, options, and cost reduction possibilities

E) All of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 93

Multiple Choice

Review LaterAdd Note

If budgeted beginning inventory is $8,000, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted production should be

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: 1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. 2) Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter, i.e., January, April, July, and October) . 3) Property tax is paid once a year in November. -The cash payments for Finch Company expected in the month of June are

Production and sales estimates for March for the Robin Co. are as follows: The number of units expected to be manufactured in March is

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called zero-based budgeting.

The first budget to be prepared is usually the production budget.

Flexible budgeting builds the effect of changes in level of activity into the budget system.

The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year.

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

If the expected sales volume for the current period is 9,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is

The primary difference between a static budget and a flexible budget is that a static budget

Prepare a monthly flexible selling expense budget for Cottonwood Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data Sales commissions Sales manager's salary Advertising expense Shipping expense Miscellaneous selling expense 6% of sales $120,000 per month $90,000 per month 1% of sales $6,000 per month plus 1.5% of sales

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $150,000 for March and receipts from sales on account total $162,500 in April. What are budgeted sales on account for April?

The capital expenditures budget details future plans for acquisition of fixed assets.

Match each phrase that follows with the term a-e) it describes. -occurs when budgets are too loose

The cash collections expected in October from accounts receivable are estimated to be

The production budget is the starting point for preparation of the direct labor cost budget.

The dollar amount of Material B used in production during the year is

The capital expenditures budget is part of the planned investing activities of a company.