FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Budgetary Planning

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

The direct labor budget is based on budgeted sales levels.The direct labor budget is based on budgeted production levels.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

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

A) Budgeted balance sheet
B) Sales budget
C) Selling and administrative budget
D) Raw materials purchases budget

E) A) and B)
F) B) and D)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Participative budgeting is an approach to budgeting that

A _____________ is the vision of what management wants the organization to achieve over the long term.

A short-term objective is a specific action managers use to reach their long term goals.A short-term objective is a specific goal that managers need to achieve in no more than a year to reach their long-term goals.

Dayton has forecast sales to be $205,000 in February,$270,000 in March,$290,000 in April,and $310,000 in May.The average cost of goods sold is 60% of sales.All sales are made on credit and sales are collected 50% in the month of sale,30% the month following and the remainder two months after the sale.What are budgeted cash receipts in May?

Creating a budget is an important part of which phase of the planning and control process?

Which component of the cash budget is shown as a line item on the budgeted balance sheet?

Manufacturing firms prepare a separate raw materials purchases budget for each material used in production.Each material should have its own budget.

Larken has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Larken's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 units.Monthly manufacturing overhead is budgeted to be $17,000 plus $6 per unit produced.What is budgeted manufacturing overhead for August?

Budgeted manufacturing overhead includes indirect manufacturing costs,but not selling or administrative costs.Budgeted manufacturing overhead includes all indirect manufacturing costs such as rent,depreciation on equipment,and utilities.

Harney,Inc.has prepared the following budgets for March.In March,budgeted production equals budgeted sales,and raw materials inventory will stay constant.What is budgeted cost of goods sold for March?

Skylark has forecast production for the next three months as follows: July 4,900 units,August 6,600 units,September 7,500 units.Monthly manufacturing overhead is budgeted to be $17,000 plus $6 per unit produced.What is budgeted manufacturing overhead for August?

Cedar Co.has forecast purchases to be $330,000 in June,$375,000 in July,$310,000 in August,and $270,000 in September.Purchases average 30% paid in cash,70% are on credit.Credit purchases are paid 60% in the month of purchase,30% during the month following,and 10% the second month following the purchase.Cash disbursements in September would be

Which of the following is not a way to reduce the dysfunctional behaviors associated with budgeting?

Jaybird Inc.produces leather handbags.The sales budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Jaybird Inc.'s ending finished goods inventory policy is 10% of the following month's sales.Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour) .How much is total labor cost during the three months July through September?

Pacific has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Pacific's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 units.Monthly costs are budgeted as follows: What is budgeted manufacturing overhead cost for August?

Which of the following is not a source that can be used in preparing the sales budget?

Grover has forecast sales to be $125,000 in February,$135,000 in March,$150,000 in April,and $140,000 in May.The average cost of goods sold is 70% of sales.All sales are made on credit and sales are collected 60% in the month of sale,and 40% the month following.What are budgeted cash receipts in April?

Orchard has forecast sales to be $250,000 in February,$270,000 in March,$300,000 in April,and $280,000 in May.The average cost of goods sold is 70% of sales.All sales are made on credit and sales are collected 60% in the month of sale,and 40% the month following.What is the budgeted Accounts Receivable balance on May 31?