Cost Management Study Set 1

The master budget for a given accounting period has all the following except:

"Budgetary slack" occurs when:

A master budget is typically prepared for:

The successful use of a budgeting system generally involves all of the following except which item?

All of the following are ways of setting the budget, except:

Revision of a completed and approved budget:

The process of planning business actions in the near future and expressing them as formal plans of action is called:

A plan of dollar amounts to be spent on long-term projects is called a:

A plan that shows the cash balance on hand at the beginning of a budget period, expected cash flow from operations, cash flows from investing activities, cash flows from financing activities, and an ending cash balance is called a(n):

A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise (or materials) to be purchased, the manufacturing, selling, administrative, and general expense 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, is called a:

A plan that states the units or costs of merchandise to be purchased by a retailer or wholesaler during the budget period is called a:

A plan showing the units of goods expected to be sold and the expected revenue from sales is called the:

The practice of maintaining budgets for the same number of future periods, revising those budgets as each period is completed and adding a new budget each period, is called:

An accounting statement that presents predicted amounts of the company's assets, liabilities, and stockholders' equity as of the end of the budget period is called a(n):

Which of the following budgets is not a financial budget?

Which of the following is not a potential benefit of having a sound budgeting process?

Which of the following budgets must be completed before preparing a cash budget?

Which of the following statements about budgeting is not true?

Which of the following factors is least likely to be considered in preparing a sales budget?

Sales forecasts are the first step in the budgeting process of a merchandising firm because: