Exam 6: Master Budget and Responsibility Accounting

Freemore Company has the following sales budget for the last six months of 2018: Sales are immediately due,however the cash collection of sales,historically,has been as follows:

Financing decisions deal with how to best use the limited resources of an organization.

As budgeting is not a cross-functional activity,it tends to be accurate and reliable with regard to forecasts.

Orange Corporation has budgeted sales of 23,000 units,targeted ending finished goods inventory of 9,000 units,and beginning finished goods inventory of 6,000 units.How many units should be produced next year?

Which of the following is true of a budget?

Which of the following statements is true of budgets?

Budgets should ________.

The production cost budget identifies how each product is manufactured and specifies all the materials,the quantity of materials in each finished product,and the work centers where the operations will be performed.

Which of the following is a reason why budgets in multinational companies are not used to evaluate the firm's performance relative to its budgets?

Kaizen budgeting can be applied to activities such as setups with the goal of reducing setup time and setup costs.

How is budgeting for a multinational corporation different than budgeting for a corporation that is strictly domestic?

The sales department in any organization is usually a profit center.

Administration of budgets is free of emotions as budgets are mechanical tools.

Which of the following is most likely to be a cost driver for the variable portion of marketing costs?

Which of the following statements is true about responsibility accounting statements?

The following information pertains to Monroe Company: How much cash will be disbursed in total in March?

Some companies are budgeting annual carbon emissions of their operations after considering an annual global emissions budget,a share for individual sectors of the economy,and what a reasonable annual allocation would be for the company.

The budgeting process is most strongly influenced by ________.

A stretch budget is a budget that ________.

Decentralized operations organized by brand or product line might result in some inefficiencies as support functions may be duplicated.