Quiz 8: The Master Budget
Business
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Q 8Q 8
Operational management should be directly involved with the strategic planning of an organization.
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Q 14Q 14
In a manufacturing organization,the cash budget is prepared immediately after the sales budget.
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Q 15Q 15
In a manufacturing organization,the production budget is prepared immediately after the sales budget.
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Q 16Q 16
The amount of raw materials that must be purchased can be computed by the following formula: Beginning inventory + Materials required - Ending inventory.
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Q 17Q 17
The amount of raw materials that must be purchased can be computed by the following formula: Ending inventory + Materials required - Beginning inventory.
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Q 18Q 18
In estimating factory overhead,it is necessary to separate costs into their fixed and variable components.
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Q 19Q 19
The effect of capital expenditures on the master budget is reflected through periodic depreciation charges in the cash outflow portion.
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Q 20Q 20
The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.
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Q 22Q 22
Balances for Accounts Receivable and Sales Discounts are projected before the cash collections schedule is prepared.
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Q 23Q 23
Balances for Accounts Receivable and Sales Discounts are projected after the cash collections schedule is prepared.
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Q 24Q 24
The final step in constructing the master budget is the preparation of pro-forma financial statements for the period.
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Q 26Q 26
Budgetary slack is an effective motivator for employees,because it reduces employee frustration when goals cannot be achieved.
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Q 30Q 30
A budget manual should include a statement of the budgetary purpose and its desired results.
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Q 33Q 33
Long-range planning carried out by top management is referred to as ______________________________.
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Q 34Q 34
Short-term planning designed to address a specific set of circumstances is referred to as ______________________________.
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Q 35Q 35
The document that results from the budgeting process is referred to as the ______________________________.
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Q 36Q 36
A budget that is expressed in terms of both units and dollars is referred to a(n)______________________________.
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Q 37Q 37
A budget that indicates the funds to be generated or consumed during the period is referred to as a ______________________________.
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Q 39Q 39
The final step in the master budget process is preparation of the _________________________.
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Q 40Q 40
In a manufacturing organization,the budget that is prepared after the sales budget is the ______________________________.
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Q 41Q 41
In a manufacturing organization,the budgets that are prepared after the production budget are the ______________________________,_________________________,and ____________________ budgets.
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Q 42Q 42
The budget that focuses on an organization's long-term needs is referred to as a(n)______________________________.
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Q 43Q 43
A budget that is prepared by adding a new budget month as each month expires is referred to as a(n)______________________________.
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Q 44Q 44
A budget that is developed with little input from operating personnel is referred to as a(n)______________________________.
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Q 45Q 45
A budget that is developed by both top management and operating personnel is referred to as a(n)______________________________.
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Q 46Q 46
If revenues are intentionally underestimated during the budgeting process,______________________________ has been created.
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Multiple Choice
Q 48Q 48
Measuring the firm's performance against established objectives is part of which of the following functions?
A)Planning
B)Controlling
C)Organizing
D)Staffing
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Multiple Choice
Q 49Q 49
The preparation of an organization's budget
A)forces management to look ahead and try to see the future of the organization.
B)requires that the entire management team work together to make and carry out the yearly plan.
C)makes performance review possible at all levels of management.
D)all of the above.
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Multiple Choice
Q 50Q 50
Which of the following is a basic element of effective budgetary control?
A)cost behavior patterns
B)cost-volume-profit analysis
C)standard costing
D)all of the above
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Multiple Choice
Q 51Q 51
When actual performance varies from the budgeted performance,managers will be more likely to revise future budgets if the variances were
A)controllable rather than uncontrollable.
B)uncontrollable rather than controllable.
C)favorable rather than unfavorable.
D)small.
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Multiple Choice
Q 52Q 52
External factors that cause the achievement of company goals are the
A)annual budget.
B)industry price and cost structure.
C)talents possessed by its managers.
D)board of directors.
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Multiple Choice
Q 53Q 53
A budget is
A)a planning tool.
B)a control tool.
C)a means of communicating goals to the firm's divisions.
D)all of the above.
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Multiple Choice
Q 54Q 54
Ineffective budgets and/or control systems are characterized by the use of
A)budgets as a planning tool only and disregarding them for control purposes.
B)budgets for motivation.
C)budgets for coordination.
D)the budget for communication.
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Multiple Choice
Q 55Q 55
Strategic planning is
A)planning activities for promoting products for the future.
B)planning for appropriate assignments of resources.
C)setting standards for the use of important but hard-to-find materials.
D)stating and establishing long-term plans.
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Multiple Choice
Q 56Q 56
Key variables that are identified in strategic planning are
A)normally controllable if they are internal.
B)seldom if ever controllable.
C)normally controllable if they occur in a domestic market.
D)normally uncontrollable if they are internal.
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Multiple Choice
Q 57Q 57
Tactical planning usually involves which level of management?
A)middle
B)top
C)middle and top
D)operational
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Multiple Choice
Q 58Q 58
Which of the following statements is true?
A)All organizations have the same set of budgets.
B)All organizations are required to budget.
C)Budgets are a quantitative expression of an organization's goals and objectives.
D)Budgets should never be used to evaluate performance.
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Multiple Choice
Q 59Q 59
Which of the following is not an "operating" budget?
A)sales budget
B)production budget
C)purchases budget
D)capital budget
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Multiple Choice
Q 60Q 60
The master budget is a static budget because it
A)is geared to only one level of production and sales.
B)never changes from one year to the next.
C)covers a preset period of time.
D)always contains the same operating and financial budgets.
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Multiple Choice
Q 61Q 61
The master budget is a
A)static budget.
B)flexible budget.
C)qualitative expression of a prior goal.
D)qualitative expression of a future goal.
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Q 62Q 62
The master budget usually includes
A)an operating budget.
B)a capital budget.
C)pro forma financial statements.
D)all of the above.
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Multiple Choice
Q 63Q 63
Which of the following is usually perceived as being the master budget's greatest advantage to management?
A)performance analysis
B)increased communication
C)increased coordination
D)required planning
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Multiple Choice
Q 64Q 64
Chronologically,the first part of the master budget to be prepared would be the
A)sales budget.
B)production budget.
C)cash budget.
D)pro forma financial statements.
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Multiple Choice
Q 65Q 65
An example of a recurring short-term plan is
A)a probable product line change.
B)expansion of plant and facilities.
C)a unit sales forecast.
D)a change in marketing strategies.
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Multiple Choice
Q 66Q 66
If the chief accountant of a firm has to prepare an operating budget for the coming year,the first budget to be prepared is the
A)sales budget.
B)cash budget.
C)purchases budget.
D)capital budget.
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Multiple Choice
Q 67Q 67
It is least likely that a production budget revision would cause a revision in the
A)capital budget.
B)cash budget.
C)purchases budget.
D)pro forma balance sheet.
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Multiple Choice
Q 68Q 68
Budgeted production for a period is equal to
A)the beginning inventory + sales - the ending inventory.
B)the ending inventory + sales - the beginning inventory.
C)the ending inventory + the beginning inventory - sales.
D)sales - the beginning inventory + purchases.
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Multiple Choice
Q 69Q 69
Chronologically,in what order are the sales,purchases,and production budgets prepared?
A)sales,purchases,production
B)sales,production,purchases
C)production,sales,purchases
D)purchases,sales,production
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Multiple Choice
Q 70Q 70
The material purchases budget tells a manager all of the following except the
A)quantity of material to be purchased each period.
B)quantity of material to be consumed each period.
C)cost of material to be purchased each period.
D)cash payment for material each perioD.
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Multiple Choice
Q 71Q 71
Of the following budgets,which one is least likely to be determined by the dictates of top management?
A)sales
B)material usage
C)revenues
D)general and administrative
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Multiple Choice
Q 72Q 72
The amount of raw material purchased in a period may be different than the amount of material used that period because
A)the number of units sold may be different from the number of units produced.
B)finished goods inventory may fluctuate during the period.
C)the raw material inventory may increase/decrease during the period.
D)companies often pay for material in the period after it is purchaseD.
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Multiple Choice
Q 73Q 73
A purchases budget
A)does not reflect early payment discounts granted by vendors.
B)is the same thing as a production budget.
C)is needed only if a firm does not pay for its merchandise in the same period as it is purchased.
D)is affected by a firm's inventory policy only if the firm purchases on credit.
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Multiple Choice
Q 74Q 74
Which of the following equations can be used to budget purchases?
(BI = beginning inventory,EI = ending inventory desired,CGS = budgeted cost of goods sold,P = budgeted purchases)
A)P = CGS + BI - EI
B)P = CGS + BI
C)P = CGS + EI + BI
D)P = CGS + EI - BI
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Multiple Choice
Q 75Q 75
Both the budgeted quantity of material to be purchased and the budgeted quantity of material to be consumed can be found in the
A)material purchases budget.
B)production budget.
C)pro forma income statement.
D)cash budget.
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Multiple Choice
Q 76Q 76
A company that maintains a raw material inventory,which is based on the following month's production needs,will purchase less material than it uses in a month where
A)sales exceed production.
B)production exceeds sales.
C)planned production exceeds the next month's planned production.
D)planned production is less than the next month's planned production.
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Multiple Choice
Q 77Q 77
If a company has a policy of maintaining an inventory of finished goods at a specified percentage of the next month's budgeted sales,budgeted production for January will exceed budgeted sales for January when budgeted
A)February sales exceed budgeted January sales.
B)January sales exceed budgeted December sales.
C)January sales exceed budgeted February sales.
D)December sales exceed budgeted January sales.
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Multiple Choice
Q 78Q 78
Depreciation on the production equipment would appear in which of the following budgets?
A)cash budget
B)production budget
C)selling and administrative expense budget
D)manufacturing overhead budget
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Multiple Choice
Q 79Q 79
The selling,general,and administrative expense budget is based on the ____ budget.
A)production
B)sales
C)cash
D)purchases
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Multiple Choice
Q 80Q 80
The budgeted amount of selling and administrative expense for a period can be found in the
A)sales budget.
B)cash budget.
C)pro forma income statement.
D)pro forma balance sheet.
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Multiple Choice
Q 81Q 81
Which of the following represents a proper sequencing in which the budgets below are prepared?
A)Direct Material Purchases,Cash,Sales
B)Production,Sales,Income Statement
C)Sales,Balance Sheet,Direct Labor
D)Sales,Production,Manufacturing Overhead
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Multiple Choice
Q 82Q 82
The detailed plan for the acquisition and replacement of major portions of property,plant,and equipment is known as the
A)capital budget.
B)purchases budget.
C)commitments budget.
D)treasury budget.
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Multiple Choice
Q 83Q 83
The budgeted payment for labor cost each period would be found in the
A)labor budget.
B)pro forma income statement.
C)selling,general,and administrative expense budget.
D)cash budget.
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Multiple Choice
Q 84Q 84
The cash budget ignores all
A)dividend payments.
B)sales of capital assets.
C)noncash accounting accruals.
D)sales of common stock.
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Multiple Choice
Q 85Q 85
Which of the following items would not be found in the financing section of the cash budget?
A)cash payments for debt retirement
B)cash payments for interest
C)cash payments for sales of investments
D)payment of accounts payable
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Multiple Choice
Q 86Q 86
The primary reason that managers impose a minimum cash balance in the cash budget is
A)because management needs discretionary cash for unforeseen business opportunities.
B)managers lack discipline to control their spending.
C)that it protects the organization from the uncertainty of the budgeting process.
D)that it makes the financial statements look more appealing to creditors.
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Multiple Choice
Q 87Q 87
Chronologically,the last part of the master budget to be prepared would be the
A)pro forma financial statements.
B)cash budget.
C)capital budget
D)production budget.
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Multiple Choice
Q 88Q 88
The pro forma income statement is not a component of the
A)master budget.
B)financial budgets.
C)operating budgets.
D)capital budget.
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Multiple Choice
Q 89Q 89
A pro forma financial statement is
A)a financial statement for past periods.
B)a projected or budgeted financial statement.
C)presented for the form but contains no dollar amounts.
D)a statement of planned production.
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Multiple Choice
Q 90Q 90
A master budget contains which of the following?
A)yes yes yes
B)no no yes
C)no no no
D)yes no yes
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Multiple Choice
Q 91Q 91
The budgeted cost of products to be sold in a future period would be found in the
A)production budget.
B)sales budget.
C)purchases budget.
D)pro forma income statement.
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Multiple Choice
Q 92Q 92
A budget that includes a 12-month planning period at all times is called a ____ budget.
A)pro forma
B)flexible
C)master
D)continuous
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Multiple Choice
Q 93Q 93
The method of budgeting that adds one month's budget to the end of the plan when the current month's budget is dropped from the plan is called ____ budgeting.
A)long-term
B)operations
C)incremental
D)continuous
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Multiple Choice
Q 94Q 94
Slack in operating budgets
A)results from unintentional managerial acts.
B)makes an organization more efficient and effective.
C)requires managers to work harder to achieve the budget.
D)is greater when managers are allowed to participate in the budgeting process.
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Multiple Choice
Q 95Q 95
Budget slack is a condition in which
A)demand is low at various times of the year.
B)excess machine capacity exists in some areas of the plant.
C)there is an intentional overestimate of expenses or an underestimate of revenues.
D)managers grant favored employees extra time off.
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Multiple Choice
Q 96Q 96
Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Emerald Company has the following accounts receivable balances:
Emerald's expected sales for June are $150,000.What were total sales for April?
A)$150,000
B)$72,414
C)$70,000
D)$140,000
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Multiple Choice
Q 97Q 97
Matthews Company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales.For the forthcoming month of March,Matthews has budgeted the beginning inventory at 30,000 units and the ending inventory at 33,000 units.This suggests that
A)February sales are budgeted at 10,000 units less than March sales.
B)March sales are budgeted at 10,000 units less than April sales.
C)February sales are budgeted at 3,000 units less than March sales.
D)March sales are budgeted at 3,000 units less than April sales.
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Multiple Choice
Q 98Q 98
Budgeted sales for the first six months for Stone Corporation are listed below:
Stone Corporation has a policy of maintaining an inventory of finished goods equal to 40 percent of the next month's budgeted sales.If Stone Corporation plans to produce 6,000 units in June,what are budgeted sales for July?
A)3,600 units
B)1,000 units
C)9,000 units
D)8,000 units
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Multiple Choice
Q 99Q 99
Budgeted sales for the first six months for Pratt Company are listed below:
Pratt Company has a policy of maintaining an inventory of finished goods equal to 30 percent of the next month's budgeted sales.If Pratt Company plans to produce 8,000 units in June,what are budgeted sales for July?
A)3,000 units
B)4,500 units
C)10,000 units
D)15,000 units
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Multiple Choice
Q 100Q 100
Schmidt Corporation manufactures card tables.The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales.Each card table requires 3 hours of labor.The budgeted labor rate for the coming year is $13 per hour.Planned sales for the months of April,May,and June are respectively 4,000;5,000;and 3,000 units.The budgeted direct labor cost for June for Schmidt Corporation is $136,500.What are budgeted sales for July for Schmidt Corporation?
A)3,500 units
B)4,250 units
C)4,000 units
D)3,750 units
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Multiple Choice
Q 101Q 101
Budgeted sales for Fleetwood Corporation for the first quarter the year are shown below:
The company has a policy that requires the ending inventory in each period to be 10 percent of the following period's sales.Assuming that the company follows this policy,what quantity of production should be scheduled for February?
A)24,300 units
B)24,700 units
C)25,000 units
D)25,700 units
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Multiple Choice
Q 102Q 102
Budgeted sales for Parker Corporation for the second quarter the year are shown below:
The company has a policy that requires the ending inventory in each period to be 15 percent of the following period's sales.Assuming that the company follows this policy,what quantity of production should be scheduled for May?
A)28,800 units
B)29,700 units
C)25,000 units
D)31,200 units
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Multiple Choice
Q 103Q 103
Budgeted sales for the first six months the year for Stewart Corporation are listed below:
Stewart Corporation has a policy of maintaining an inventory of finished goods equal to 35 percent of the next month's budgeted sales.How many units has Stewart Corporation budgeted to produce in the first quarter of the year?
A)18,350 units
B)17,650 units
C)22,000 units
D)22,050 units
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Multiple Choice
Q 104Q 104
Production of Product B has been budgeted at 200,000 units for Novenber.One unit of Product B requires 2 lbs.of raw material.The projected beginning and ending materials inventory for Novenber are:
Beginning inventory: 2,000 lbs.
Ending inventory: 10,000 lbs.
How many lbs.of material should be purchased during Novenber?
A)192,000
B)208,000
C)408,000
D)416,000
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Multiple Choice
Q 105Q 105
Production of Product 101 has been budgeted at 300,000 units for June.One unit of Product 101 requires 3 lbs.of raw material.The projected beginning and ending materials inventory for June are:
Beginning inventory: 4,000 lbs.
Ending inventory: 16,000 lbs.
How many lbs.of material should be purchased during June?
A)288,000
B)312,000
C)912,000
D)936,000
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Multiple Choice
Q 106Q 106
Lindburgh Company
Lindburgh Company manufactures toy airplanes.Information on Lindburgh Company's labor costs follow:
The following information applies to the upcoming month of July for Lindburgh Company:
Refer to Lindburgh Company.What amount of budgeted labor cost would appear in the July selling,general,and administrative expense budget?
A)$10,000
B)$16,000
C)$15,000
D)$23,000
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Multiple Choice
Q 107Q 107
Lindburgh Company
Lindburgh Company manufactures toy airplanes.Information on Lindburgh Company's labor costs follow:
The following information applies to the upcoming month of July for Lindburgh Company:
Refer to Lindburgh Company.What is Lindburgh's budgeted factory labor cost for July?
A)$8,000
B)$15,600
C)$25,600
D)$9,600
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Multiple Choice
Q 108Q 108
Hennessey Company manufactures card tables.The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales.Each card table requires 3 hours of labor.The budgeted labor rate for the coming year is $13 per hour.Planned sales for the months of April,May,and June are respectively 4,000;5,000;and 3,000 units.What is Hennessey Company's budgeted direct labor cost for May?
A)$54,600
B)$163,800
C)$226,200
D)$179,400
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Multiple Choice
Q 109Q 109
Hall Company manufactures pool tables.The company has a policy of maintaining a finished goods inventory equal to 35 percent of the next month's planned sales.Each card table requires 4 hours of labor.The budgeted labor rate for the coming year is $12 per hour.Planned sales for the months of July,August,and September are respectively 6,000;8,000;and 5,000 units.What is Hall Company's budgeted direct labor cost for August?
A)$ 83,400
B)$333,600
C)$417,600
D)$434,400
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Multiple Choice
Q 110Q 110
Clooney Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.
At the end of May,Clooney Company has the following accounts receivable balances:
Clooney's expected sales for June are $150,000.How much cash will Clooney Company expect to collect in June?
A)$127,400
B)$129,000
C)$148,600
D)$152,520
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Multiple Choice
Q 111Q 111
For the month of November,Whetzel Corporation.predicts total cash collections to be $1 million.Also for November,Whetzel Corporation.estimates that its beginning cash balance will be $50,000 and that it will borrow cash in the amount of $70,000.If Whetzel Corporation.estimates an ending cash balance of $30,000 for November,what must its projected cash disbursements be?
A)$1,090,000
B)$1,120,000
C)$1,070,000
D)$1,020,000
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Multiple Choice
Q 112Q 112
For the month of March,Robertson Corporation.predicts total cash collections to be $1.5 million.Also for March,Robertson Corporation.estimates that its beginning cash balance will be $60,000 and that it will borrow cash in the amount of $80,000.If Robertson Corporation.estimates an ending cash balance of $40,000 for March,what must its projected cash disbursements be?
A)$1,520,000
B)$1,580,000
C)$1,600,000
D)$1,640,000
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Multiple Choice
Q 113Q 113
Mercy Medical Center has provided you with the following budget information for April:
Mercy has a policy of maintaining a minimum cash balance of $20,000 and borrows only in $1,000 increments.How much will Mercy borrow in April?
A)$80,000
B)$79,600
C)$99,000
D)$100,000
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Multiple Choice
Q 114Q 114
Bentonville Medical Center has provided you with the following budget information for July:
Bentonville has a policy of maintaining a minimum cash balance of $30,000 and borrows only in $1,000 increments.How much will Bentonville borrow in July?
A)$ 70,400
B)$ 71,000
C)$100,400
D)$101,000
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Multiple Choice
Q 115Q 115
Shannon Companies
Refer to Shannon Companies.For Company A,what are the budgeted cash collections?
A)$700
B)$500
C)$300
D)$400
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Multiple Choice
Q 116Q 116
Shannon Companies
Refer to Shannon Companies.For Company B,what are the budgeted cash disbursements?
A)$600
B)$700
C)$500
D)$400
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Multiple Choice
Q 117Q 117
Shannon Companies
Refer to Shannon Companies.For Company C,what are the budgeted cash collections?
A)$200
B)$300
C)$400
D)$500
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Multiple Choice
Q 118Q 118
Sullivan Company
Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year.Budgeted variable factory overhead is $3.00 per unit produced;budgeted fixed factory overhead is $75,000 per month,with $16,000 of this amount being factory depreciation.
Refer to Sullivan Company.If the budgeted production for April is 6,000 units,then the total budgeted factory overhead for April is:
A)$77,000
B)$82,000
C)$85,000
D)$93,000
Free
Multiple Choice
Q 119Q 119
Sullivan Company
Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year.Budgeted variable factory overhead is $3.00 per unit produced;budgeted fixed factory overhead is $75,000 per month,with $16,000 of this amount being factory depreciation.
Refer to Sullivan Company.If the budgeted production for May is 5,000 units,then the total budgeted factory overhead per unit:
A)$15
B)$18
C)$20
D)$22
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Multiple Choice
Q 120Q 120
Sullivan Company
Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year.Budgeted variable factory overhead is $3.00 per unit produced;budgeted fixed factory overhead is $75,000 per month,with $16,000 of this amount being factory depreciation.
Refer to Sullivan Company.If the budgeted cash disbursements for factory overhead for June are $80,000,then the budgeted production for June must be:
A)7,400 units
B)6,200 units
C)6,500 units
D)7,000 units
Free
Multiple Choice
Q 121Q 121
Whitney Corporation
Whitney Corporation,a reseller of women's fashions,has budgeted its activity for March.The budget information is presented below:
Refer to Whitney Corporation.The budgeted cash receipts for March are:
A)$412,500
B)$137,500
C)$585,000
D)$550,000
Free
Multiple Choice
Q 122Q 122
Whitney Corporation
Whitney Corporation,a reseller of women's fashions,has budgeted its activity for March.The budget information is presented below:
Refer to Whitney Corporation.The budgeted cash disbursements for March are:
A)$382,500
B)$442,500
C)$472,500
D)$477,500
Free
Multiple Choice
Q 123Q 123
Whitney Corporation
Whitney Corporation,a reseller of women's fashions,has budgeted its activity for March.The budget information is presented below:
Refer to Whitney Corporation.The budgeted net income for March is:
A)$107,500
B)$137,500
C)$ 42,500
D)$ 77,500
Free
Multiple Choice
Q 124Q 124
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The collections from customers during the first quarter (item a)are:
A)$50
B)$60
C)$57
D)$73
Free
Multiple Choice
Q 125Q 125
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The borrowing required during the first quarter to meet the minimum cash balance (item b)is:
A)$0
B)$7
C)$10
D)$ 3
Free
Multiple Choice
Q 126Q 126
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The cash disbursed for purchases during the second quarter (item c)is:
A)$13
B)$55
C)$ 9
D)$21
Free
Multiple Choice
Q 127Q 127
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The repayment (including interest)of financing during the second quarter (item d)is:
A)$ 4
B)$ 0
C)$17
D)$ 7
Free
Multiple Choice
Q 128Q 128
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The cash balance at the beginning of the second quarter (item e)is:
A)$10
B)$14
C)$ 0
D)$ 7
Free
Multiple Choice
Q 129Q 129
Beasley Company
Beasley Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters;these lower case letters will be referred to in the questions that follow.
Beasley requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Beasley Corporation
Cash Budget
Refer to Beasley Company.The total disbursements during the third quarter (item f)is:
A)$84
B)$78
C)$82
D)$59
Free
Multiple Choice
Q 130Q 130
Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
The following information applies to the upcoming month of July for Priceless Memories Company:
Refer to Priceless Memories Company.What amount of budgeted labor cost would appear in the July selling,general,and administrative expense budget?
A)$12,000
B)$21,000
C)$19,800
D)$32,800
Free
Multiple Choice
Q 131Q 131
Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
The following information applies to the upcoming month of July for Priceless Memories Company:
Refer to Priceless Memories Company.What is Priceless Memories' budgeted factory labor cost for July?
A)$13,000
B)$24,000
C)$34,000
D)$15,000
Free
Multiple Choice
Q 132Q 132
A budget manual should include which of the following?
A)a list of specific budgetary activities to be performed
B)original,revised,and approved budgets
C)a calendar of scheduled budgetary activities
D)all of the above
Free
Multiple Choice
Q 133Q 133
Managers may be more willing to accept a budget if
A)it is continuous.
B)it is imposed.
C)it is very hard to attain.
D)they can participate in its development.
Free
Multiple Choice
Q 134Q 134
Which of the following is not true about an imposed budget?
A)It reduces the budgeting process time frame.
B)It uses the knowledge of top management as it relates to resource availability.
C)It enhances coordination.
D)It increases the feeling of teamwork.
Free
Multiple Choice
Q 135Q 135
A disadvantage of participatory budgets is that
A)there is a high degree of acceptance of the goals and objectives by operating management.
B)they are usually more realistic.
C)they lead to better morale and higher motivation.
D)they usually require more time to prepare.
Free
Multiple Choice
Q 136Q 136
The master budget
A)reflects the determination of an organization's cost of capital.
B)serves as a managerial tool for the organization.
C)includes only an organization's pro forma financial statements.
D)utilizes only information from the financial accounting system.
Free
Multiple Choice
Q 137Q 137
Which of the following items should not be included in a company's budget manual?
A)sample budgetary forms
B)a statement of desired results of the budget
C)a listing of budgetary activities to be performed
D)financial statements for the upcoming fiscal year
Free
Multiple Choice
Free
Essay
Q 139Q 139
What role does the budgeting activity play in managerial compensation and performance evaluation?
Free
Essay
Q 140Q 140
Why will there frequently be a difference between the budgeted cost of material in the material purchases budget and the budgeted cash disbursement for material in the cash budget?
Free
Essay
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Essay
Q 142Q 142
Why have many managers in recent years moved toward emphasizing employee participation in the budgeting process rather than simply imposing the budget on the employees?
Free
Essay
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Essay
Q 144Q 144
List and describe the pro-forma financial statements that are prepared at the end of the budgeting process.
Free
Essay
Q 145Q 145
Coolidge Company has the following collection pattern for its accounts receivable:
40 percent in the month of sale
50 percent in the month following the sale
8 percent in the second month following the sale
2 percent uncollectible
The company has recent credit sales as follows:
How much should the company expect to collect on its receivables in June?
Free
Essay
Q 146Q 146
Santa Fe Music,Inc.
Santa Fe Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Santa Fe Music for December of this year and the first few months of next year:
Free
Essay
Q 147Q 147
Santa Fe Music,Inc.
Santa Fe Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Santa Fe Music for December of this year and the first few months of next year:
Free
Essay
Q 148Q 148
Denton Company
Denton Company manufactures three products (A,B,and C)from three raw materials (X,Y,and Z).The following table indicates the number of pounds of each material that is required to manufacture each type of product:
Free
Essay
Q 149Q 149
Denton Company
Denton Company manufactures three products (A,B,and C)from three raw materials (X,Y,and Z).The following table indicates the number of pounds of each material that is required to manufacture each type of product:
Free
Essay
Q 150Q 150
Shown below are the totals from period budgets of Terrell Corporation for the current year:
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Essay
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Essay
Q 152Q 152
Willborn Builders in the building construction business.In Year 2,it is expected that 40 percent of a month's sales will be collected in cash,with the balance being collected the following month.Of the purchases,50 percent are paid the following month,30 percent are paid in two months,and the remaining 20 percent are paid during the month of purchase.The sales force receives $2,000 a month base pay plus a 2 percent commission.Labor expenses are expected to be $4,000 a month.Other operating expenses are expected to run about $2,000 a month,including $500 for depreciation.The ending cash balance for Year 1 was $4,500.
Free
Essay