Question 1

The ____________________ shows the expenses and related cash payments associated with planned selling activities.

Accepted Answer

selling expenses budget

Question 2

A budget ___________________ the operating activities needed to meet the business' goals.

Accepted Answer

quantifies

Question 3

Budgets add discipline to the planning process because:

Accepted Answer

A)  They are orderly and detailed. 
B)  They are detailed. 
C)  They are quantified. 
D)  They are estimates. 
A)  They are orderly and detailed. 
B)  They are detailed. 
C)  They are quantified. 
D)  They are estimates. A

Question 4

The purchases budget shows the purchases required to meet the goals in the sales budget.

Accepted Answer

A) True 
 B)False

Question 5

What is a master budget and what are the components of a master budget for a retail business?

Accepted Answer

The answer of What is a master budget and what...

Question 6

In preparing the selling expenses budget, fixed costs will be dependent on the projected units to be sold.

Accepted Answer

A) True 
 B)False

Question 7

The cost report for a budget would not be prepared until after the budget had been implemented.

Accepted Answer

A) True 
 B)False

Question 8

Martin sells a number of different designs of shoes. The following is the volume sold in December and the estimate for one line of shoes for the first three months of the year:
 
 $$\begin{array} { | l | r | } 
\hline & \begin{array} { r } 
\text { Number } \
\text { of shoes }
\end{array} \
\hline \text { December } & 500 \
\hline \text { January } & 550 \
\hline \text { February } & 450 \
\hline \text { March } & 500 \
\hline
\end{array}$$ 
Each pair of shoes sells for $40 per pair. 20% of sales are for cash with the remainder being collected in the following month.
a. Prepare the sales budget for the January to March period.
b. Prepare a schedule of cash collections for the January to March period.

Accepted Answer

The answer of Martin sells a number of different designs...

Question 9

Comparing budgeted amounts to actual performance is not an important part of the budgeting process.

Accepted Answer

A) True 
 B)False

Question 10

In preparing the selling expenses budget, variable costs will be dependent on the projected units to be sold.

Accepted Answer

A) True 
 B)False

Question 11

Differences between planned and actual results can have both ____________________ and_______________ consequences.

Accepted Answer

The answer of Differences between planned and actual results can...

Question 12

A variable selling expense is:

Accepted Answer

A)  an expense that is directly proportional to sales. 
B)  an expense that is indirectly proportional to sales. 
C)  an expense that never changes. 
D)  an expense that varies between the selling and general and administration budgets 
A)  an expense that is directly proportional to sales. 
B)  an expense that is indirectly proportional to sales. 
C)  an expense that never changes. 
D)  an expense that varies between the selling and general and administration budgets

Question 13

Example 3.1
The information below is used for the following problems.
Bob's Shirt Shop sells t-shirts at soccer tournaments. The shirts sell for $20 each. This year, Bob expects to sell 500 shirts in May, 600 shirts in June, 500 shirts in July, 700 shirts in August, 900 shirts in September and 800 shirts in October. On average, 30% of his clients purchase on credit. Bob allows those customers to pay for their purchases the month after they have made their purchase. Bob's policy is to end each month with an ending inventory equal to 20% of the next month's projected sales. Bob pays $5 for each t-shirt that he purchases. Bob's supplier allows him to pay for his purchases 30 days after the purchase. Bob's Shirt Shop expects to incur the following expenses for each month of the third quarter of this year:
 $$\begin{array} { l r } 
\text { Rent (60\% general and administrative, } 40 \% \text { selling) } & \$ 1000 \
\text { Utilities (50\% general and administrative, } 50 \% \text { selling) } & 600 \
\text { Advertising } & 500 \
\text { Salaries (70\% general and administrative, } 30 \% \text { selling) } & 2500 \
\text { Commissions (per each shirt sold) } & 3
\end{array}$$ Bob must pay for his selling and general and administrative expenses in the month that they are incurred.
-Refer to Example 3.1. What are June's total projected sales in dollars? When will the cash be collected for these sales?

Accepted Answer

June sales in dollars: 600 shirts x $20

Question 14

Excessive cash balances are good for a business.

Accepted Answer

A) True 
 B)False

Question 15

The ____________________ shows the number of units of inventory that the business expects to sell each month, the related monthly sales revenue, and the monthly cash collections from sales.

Accepted Answer

The answer of The ____________________ shows the number of units...

Question 16

The ____________________ budgets prepared in a business' budgeting process are the projected financial statements for the budget period.

Accepted Answer

The answer of The ____________________ budgets prepared in a business'...

Question 17

The ____________________ shows the purchases in units required each month to make the expected sales and to keep inventory at the desired level.

Accepted Answer

The answer of The ____________________ shows the purchases in units...

Question 18

Focussing on improving the activities showing significant differences between budgeted and actual results is:

Accepted Answer

A)  quantifying plans. 
B)  creating benchmarks. 
C)  cash management. 
D)  management by exception. 
A)  quantifying plans. 
B)  creating benchmarks. 
C)  cash management. 
D)  management by exception.

Question 19

A ____________________ is a report that gives a financial description of one part of a business' planned activities.

Accepted Answer

The answer of A ____________________ is a report that gives...

Question 20

The term just-in-time refers to:

Accepted Answer

A)  cash collections. 
B)  sales to customers. 
C)  inventory. 
D)  collections from customers. 
A)  cash collections. 
B)  sales to customers. 
C)  inventory. 
D)  collections from customers.

The ____________________ shows the expenses and related cash payments associated with planned selling activities.

A budget ___________________ the operating activities needed to meet the business' goals.

Budgets add discipline to the planning process because:

The purchases budget shows the purchases required to meet the goals in the sales budget.

What is a master budget and what are the components of a master budget for a retail business?

In preparing the selling expenses budget, fixed costs will be dependent on the projected units to be sold.

The cost report for a budget would not be prepared until after the budget had been implemented.

Comparing budgeted amounts to actual performance is not an important part of the budgeting process.

In preparing the selling expenses budget, variable costs will be dependent on the projected units to be sold.

Differences between planned and actual results can have both ______ and_ consequences.

A variable selling expense is:

Excessive cash balances are good for a business.

The ____________________ shows the number of units of inventory that the business expects to sell each month, the related monthly sales revenue, and the monthly cash collections from sales.

The ____________________ budgets prepared in a business' budgeting process are the projected financial statements for the budget period.

The ____________________ shows the purchases in units required each month to make the expected sales and to keep inventory at the desired level.

Focussing on improving the activities showing significant differences between budgeted and actual results is:

A ____________________ is a report that gives a financial description of one part of a business' planned activities.

The term just-in-time refers to:

Introduction to Business Accounting and the Role of Professional Skills

Developing a Business Plan: Cost-Volume-Profit Analysis

The Accounting System: Concepts and Applications

Recording, Storing and Reporting Accounting Information

Managing and Reporting Working Capital

The Income Statement: Content and Use

The Balance Sheet: Content, Use and Analysis

The Cash Flow Statement: Content and Use

Sustainable Business

Short-Term Planning Decisions

Capital Expenditure Decisions

Filters

Exam 3: Developing a Business Plan: Budgeting

The ____________________ shows the expenses and related cash payments associated with planned selling activities.

A budget ___________________ the operating activities needed to meet the business' goals.

Budgets add discipline to the planning process because:

The purchases budget shows the purchases required to meet the goals in the sales budget.

What is a master budget and what are the components of a master budget for a retail business?

In preparing the selling expenses budget, fixed costs will be dependent on the projected units to be sold.

The cost report for a budget would not be prepared until after the budget had been implemented.

Comparing budgeted amounts to actual performance is not an important part of the budgeting process.

In preparing the selling expenses budget, variable costs will be dependent on the projected units to be sold.

Differences between planned and actual results can have both ____________________ and_______________ consequences.

A variable selling expense is:

Excessive cash balances are good for a business.

The ____________________ shows the number of units of inventory that the business expects to sell each month, the related monthly sales revenue, and the monthly cash collections from sales.

The ____________________ budgets prepared in a business' budgeting process are the projected financial statements for the budget period.

The ____________________ shows the purchases in units required each month to make the expected sales and to keep inventory at the desired level.

Focussing on improving the activities showing significant differences between budgeted and actual results is:

A ____________________ is a report that gives a financial description of one part of a business' planned activities.

The term just-in-time refers to:

Introduction to Business Accounting and the Role of Professional Skills

Developing a Business Plan: Cost-Volume-Profit Analysis

The Accounting System: Concepts and Applications

Recording, Storing and Reporting Accounting Information

Managing and Reporting Working Capital

The Income Statement: Content and Use

The Balance Sheet: Content, Use and Analysis

The Cash Flow Statement: Content and Use

Sustainable Business

Short-Term Planning Decisions

Capital Expenditure Decisions

Filters

Differences between planned and actual results can have both ______ and_ consequences.