Quiz 8: The Master Budget

Strategic planning is focused on short-term goals of less than five years.

Strategic planning is focused on long-range goals of five to ten years.

The budget is an important source of feedback for an organization.

Most tactical plans are single use plans.

An annual budget is an example of a strategic plan.

An annual budget is an example of a single use tactical plan.

Top management should be directly involved in strategic planning for an organization.

Operational management should be directly involved with the strategic planning of an organization.

The financial budget is prepared before the operating budget.

The financial budget is prepared after the operating budget.

The operating budget is expressed both in units and dollars.

The first stage in the budgeting process is the preparation of a sales budget.

The first stage in the budgeting process is the preparation of a cash collections budget.

In a manufacturing organization,the cash budget is prepared immediately after the sales budget.

In a manufacturing organization,the production budget is prepared immediately after the sales budget.

The amount of raw materials that must be purchased can be computed by the following formula: Beginning inventory + Materials required - Ending inventory.

The amount of raw materials that must be purchased can be computed by the following formula: Ending inventory + Materials required - Beginning inventory.

In estimating factory overhead,it is necessary to separate costs into their fixed and variable components.

The effect of capital expenditures on the master budget is reflected through periodic depreciation charges in the cash outflow portion.

The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.

The cash budget is constructed after all other budgets have been completed.

Balances for Accounts Receivable and Sales Discounts are projected before the cash collections schedule is prepared.

Balances for Accounts Receivable and Sales Discounts are projected after the cash collections schedule is prepared.

The final step in constructing the master budget is the preparation of pro-forma financial statements for the period.

A continuous budget is prepared by adding a new budget month as each month expires.

Budgetary slack is an effective motivator for employees,because it reduces employee frustration when goals cannot be achieved.

Budgetary slack is frequently found in imposed budgets.

A participatory budget is developed by both top management and operating personnel.

A budget manual should include pro-forma financial statements for the upcoming period.

A budget manual should include a statement of the budgetary purpose and its desired results.

A calendar of scheduled budgetary activities helps to coordinate the budgeting process.

Top management can reduce slack by using a bonus system to link performance to the budget.

Long-range planning carried out by top management is referred to as ______________________________.

Short-term planning designed to address a specific set of circumstances is referred to as ______________________________.

The document that results from the budgeting process is referred to as the ______________________________.

A budget that is expressed in terms of both units and dollars is referred to a(n)______________________________.

A budget that indicates the funds to be generated or consumed during the period is referred to as a ______________________________.

The starting point for any master budget is the _________________________.

The final step in the master budget process is preparation of the _________________________.

In a manufacturing organization,the budget that is prepared after the sales budget is the ______________________________.

In a manufacturing organization,the budgets that are prepared after the production budget are the ______________________________,_________________________,and ____________________ budgets.

The budget that focuses on an organization's long-term needs is referred to as a(n)______________________________.

A budget that is prepared by adding a new budget month as each month expires is referred to as a(n)______________________________.

A budget that is developed with little input from operating personnel is referred to as a(n)______________________________.

A budget that is developed by both top management and operating personnel is referred to as a(n)______________________________.

If revenues are intentionally underestimated during the budgeting process,______________________________ has been created.

A budget aids in A)communication. B)motivation. C)coordination. D)all of the above.

Measuring the firm's performance against established objectives is part of which of the following functions? A)Planning B)Controlling C)Organizing D)Staffing

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.

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

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.

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.

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.

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.

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.

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.

Tactical planning usually involves which level of management? A)middle B)top C)middle and top D)operational

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.

Which of the following is not an "operating" budget? A)sales budget B)production budget C)purchases budget D)capital budget

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.

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.

The master budget usually includes A)an operating budget. B)a capital budget. C)pro forma financial statements. D)all of the above.

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

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.

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.

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.

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.

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.

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

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.

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

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.

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.

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

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.

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.

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.

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

The selling,general,and administrative expense budget is based on the ____ budget. A)production B)sales C)cash D)purchases

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.

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

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.

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.

The cash budget ignores all A)dividend payments. B)sales of capital assets. C)noncash accounting accruals. D)sales of common stock.

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

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.

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.

The pro forma income statement is not a component of the A)master budget. B)financial budgets. C)operating budgets. D)capital budget.

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.

A master budget contains which of the following? A)yes yes yes B)no no yes C)no no no D)yes no yes

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.

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

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

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.

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.

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Shannon Companies Refer to Shannon Companies.For Company A,what are the budgeted cash collections? A)$700 B)$500 C)$300 D)$400

Shannon Companies Refer to Shannon Companies.For Company B,what are the budgeted cash disbursements? A)$600 B)$700 C)$500 D)$400

Shannon Companies Refer to Shannon Companies.For Company C,what are the budgeted cash collections? A)$200 B)$300 C)$400 D)$500

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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.

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.

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.

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

Explain why managers might want to build slack into a budget.

What role does the budgeting activity play in managerial compensation and performance evaluation?

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?

Explain why different types of organizations will have different sets of budgets.

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?

What are some of the benefits of a well-prepared budget?

List and describe the pro-forma financial statements that are prepared at the end of the budgeting process.

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?

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:

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:

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:

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:

Shown below are the totals from period budgets of Terrell Corporation for the current year:

The following are forecasts of sales and purchases for Savannah Company:

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.