Exam 11: Variance Analysis: Revenue and Cost

National Telephone Company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company's controller has suggested initiating a formal budgeting process. Which of the following steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system?

A continuous (or perpetual) budget

Cash Sales Credit Sales January £80,000 £350,000 February 60,000 200,000 March 50,000 145,000 April 45,000 130,000 May 55,000 170,000 June 50,000 150,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on credit sales: $60 \%$ in month of sale $30 \%$ in month following sale $10 \%$ in second month following sale - What is the budgeted accounts receivable balance on May 30

Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared

Describe the basic process of budgeting (with diagrams)

Which of the following is not correct regarding the manufacturing overhead budget?

Which of the following is not a benefit of budgeting?

Self-imposed budgets typically are