The cash budget must be prepared before you can complete which of the following?
A) Production budget.
B) Budgeted balance sheet.
C) Raw materials purchases budget.
D) Schedule of cash disbursements.
What is the budget or schedule that provides necessary input data for the direct labour budget?
A) Raw materials purchases budget.
B) Production budget.
C) Schedule of cash collections.
D) Cash budget.
Which of the following is NOT a benefit of budgeting?
A) It uncovers potential bottlenecks before they occur.
B) It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.
C) It ensures that accounting records comply with generally accepted accounting principles.
D) It provides benchmarks for evaluating subsequent performance.
Which of the following best describes the direct materials purchase budget?
A) It is the beginning point in the budget process.
B) It must provide for the desired ending inventory as well as for production.
C) It is accompanied by a schedule of cash collections.
D) It is completed after the cash budget.