Exam 20: Master Budgets and Performance Planning

Match the following definitions with the appropriate terms

A plan that lists the types and amounts of selling expenses expected during the budget period.

Budget

A plan that shows the predicted costs for direct materials, direct labor, and overhead costs to be incurred in manufacturing the units in the production budget.

Capital expenditure budget

An accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period.

Manufacturing budget

Correct Answer:

Verified

A plan that lists the types and amounts of selling expenses expected during the budget period.

A plan that shows the predicted costs for direct materials, direct labor, and overhead costs to be incurred in manufacturing the units in the production budget.

An accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period.

A formal statement of future plans, usually expressed in monetary terms.

A plan showing the units of goods to be sold and the sales to be derived; usually the starting point in the budgeting process.

A plan that lists dollar amounts to be both received from disposing of plant assets and spent on purchasing additional plant assets to carry out the budgeted business activities.

The practice of preparing budgets for a selected number of several periods and revising those budgets as each period is completed.

A plan showing the number of units to be produced each month.

A plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.

A new set of budgets added to replace the ones that have lapsed as each budget period goes by.

(Matching)

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Question 81

A plan showing the units of goods to be sold and the revenue to be derived from sales,that is the usual starting point in the budgeting process,is called the:

(Multiple Choice)

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Question 82

The financial budgets include the cash budget and the capital expenditures budget.

(True/False)

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Question 83

Which of the following is a financial budget?

(Multiple Choice)

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Question 84

Miles Company is preparing a cash budget for February.The company has $30,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $96,250 in cash disbursements during February.Miles Company has an agreement with its bank to maintain a cash balance of $10,000.What amount,if any,must the company borrow during February to maintain a $10,000 cash balance?

(Essay)

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Question 85

Indicate the order in which the following budgets would be completed (1 = first and so on) (A)Merchandise purchases budget (B)Capital expenditures budget (C)Selling expense budget (D)Budgeted balance sheet __ (E)Cash budget

(Short Answer)

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Question 86

What is activity-based budgeting?

(Essay)

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Question 87

Lingstat Company is trying to decide how many units of merchandise to order each month.The company's policy is to have 15% of the next month's sales in inventory at the end of each month.Projected sales for August,September,and October are 5,000 units,6,000 units,and 4,000 units,respectively.How many units must be purchased in September?

(Multiple Choice)

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Question 88

A department store has budgeted sales of 12,000 men's suits in September.Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season.Beginning inventory for September is expected to be 4,000 suits.What is the dollar amount of purchase of suits? Each suit has a cost of $75.

(Multiple Choice)

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Question 89

What is a production budget?

(Essay)

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Question 90

Match the following definitions with the appropriate terms

A plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.

Master budget

An accounting report that presents predicted amounts of the company's assets, liabilities, and equity balances at the end of the budget period.

General and administrative expense budget

A plan showing the units of goods to be sold and the sales to be derived; the usual starting point in the budgeting process.

Budget

Correct Answer:

Verified

A plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.

An accounting report that presents predicted amounts of the company's assets, liabilities, and equity balances at the end of the budget period.

A plan showing the units of goods to be sold and the sales to be derived; the usual starting point in the budgeting process.

An accounting report that presents predicted amounts of the company's revenues and expenses for the budgeting period.

A quantity of inventory or materials over the minimum to reduce the risk of running short.

A comprehensive business plan that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expenses to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet.

A formal statement of a company's future plans, usually expressed in monetary terms.

A plan that shows predicted operating expenses not included in the selling expenses budget.

A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from any loans needed to maintain a minimum cash balance and repayments of such loans

(Matching)

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Question 91

The Lamb Company budgeted sales for January,February,and March of $96,000,$88,000,and $72,000,respectively.Seventy percent of sales are on credit.The company collects 60% of its credit sales in the month following sale,35% in the second month following sale,and 5% is not collected.What are Lamb's expected cash receipts for March related to all current and past sales?

(Essay)

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Question 92

Reference: 20_03 Berkley Co.'s sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales. -Assume that total sales for January are budgeted to be $50,000.What are the expected cash receipts for January from the current and past sales? Round all calculations to full dollar amounts.

(Multiple Choice)

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Question 93

The process of planning future business actions and expressing them as a formal plan is called:

(Multiple Choice)

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Question 94

Del Carpio,Inc.sells two products,Widgets and Gadgets.The sales forecast in units for the first quarter of the coming year is: Widgens Gadgets January 20,000 36,000 February 28,000 60,000 March 36,000 64,000 Cash sales are 30% of each product's monthly sales.The remaining sales are credit sales that are collected as follows: 70% in the month of sale,20% the next month,and 10% in the following month.Unit sale prices are $30 and $20 for Widgets and Gadgets,respectively. Determine the company's cash receipts for March from its current and past sales.

(Essay)

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Question 95

A plan that states the number of units to be manufactured during each future period covered by the budget,based on the budgeted sales for the period and the levels of inventory needed to support future sales,is the:

(Multiple Choice)

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Question 96

The manufacturing budget shows only the direct materials needed for production.

(True/False)

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Question 97

To determine the production budget for an accounting period,consideration is not given to which of the following:

(Multiple Choice)

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Question 98

Slim Corp.requires a minimum $8,000 cash balance.If necessary,loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly).Loans are repaid at month's end from any excess cash.The cash balance on July 1 is $8,400.Cash receipts other than for loans received for July,August,and September are forecasted as $24,000,$32,000,and $40,000,respectively.Payments other than for loan or interest payments for the same period are planned at $28,000,$30,000,and $32,000,respectively.At July 1,there are no outstanding loans. Required: Prepare a cash budget for July,August,and September.

(Essay)

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Question 99

Activity-based budgeting is a budget system based on expected activities and their activity levels,which helps management plan for the resources required.

(True/False)

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Question 100

Showing 81 - 100 of 164

A plan showing the units of goods to be sold and the revenue to be derived from sales,that is the usual starting point in the budgeting process,is called the:

The financial budgets include the cash budget and the capital expenditures budget.

Which of the following is a financial budget?

Indicate the order in which the following budgets would be completed (1 = first and so on) (A)Merchandise purchases budget (B)Capital expenditures budget (C)Selling expense budget (D)Budgeted balance sheet __ (E)Cash budget

What is activity-based budgeting?

What is a production budget?

The process of planning future business actions and expressing them as a formal plan is called:

A plan that states the number of units to be manufactured during each future period covered by the budget,based on the budgeted sales for the period and the levels of inventory needed to support future sales,is the:

The manufacturing budget shows only the direct materials needed for production.

To determine the production budget for an accounting period,consideration is not given to which of the following:

Activity-based budgeting is a budget system based on expected activities and their activity levels,which helps management plan for the resources required.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

Exam 20: Master Budgets and Performance Planning

A plan showing the units of goods to be sold and the revenue to be derived from sales,that is the usual starting point in the budgeting process,is called the:

The financial budgets include the cash budget and the capital expenditures budget.

Which of the following is a financial budget?

Indicate the order in which the following budgets would be completed (1 = first and so on) ______ (A)Merchandise purchases budget ______ (B)Capital expenditures budget ______ (C)Selling expense budget ______ (D)Budgeted balance sheet ______ (E)Cash budget

What is activity-based budgeting?

What is a production budget?

The process of planning future business actions and expressing them as a formal plan is called:

A plan that states the number of units to be manufactured during each future period covered by the budget,based on the budgeted sales for the period and the levels of inventory needed to support future sales,is the:

The manufacturing budget shows only the direct materials needed for production.

To determine the production budget for an accounting period,consideration is not given to which of the following:

Activity-based budgeting is a budget system based on expected activities and their activity levels,which helps management plan for the resources required.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

Indicate the order in which the following budgets would be completed (1 = first and so on) (A)Merchandise purchases budget (B)Capital expenditures budget (C)Selling expense budget (D)Budgeted balance sheet __ (E)Cash budget