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Master Budgets and Planning
Master Budgets and Planning MCQs
?
Which of the following is not a benefit of budgeting?
It promotes study, research, and a focus on the future
It is a source of motivation
It will prevent net losses from occurring
It is a means of coordinating business activities
?
Which is not a responsibility of the budget committee?
Providing central guidance
Providing continued communication of the budget to the organization
Rejecting department budgets that do not reflect realistic amounts
Preparation and development of department budgets
?
In which type of budgets is a budget period added as one budget period elapses?
Financial budgets
Rolling budgets
Production budgets
Selling and administrative expense budgets
?
Which of the following budgets is normally prepared first?
Cash budget
Sales budget
Merchandise purchases budget
Selling expense budget
?
The following projections have been made: Cash sales, $380,000. Beginning cash balance, $30,000. Operating expenses of $420,000, including deprec...
$80,000
$40,000
$52,000
$48,000
?
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$35,000
$51,000
$54,000
$50,000
?
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$45,000
$60,000
$50,000
$55,000
?
Which of the following statements is true?
Budgeted bal. sheets are not dependent upon budgeted inc. statements
Budgeted income statements include amortization expenses
Cash budgets include amortization expenses
Production bud. shows the cost of the raw material to be purchased
?
Which of the following budgets is prepared last?
Budgeted income statement
Capital expenditures budget
Manufacturing budget
Budgeted balance sheet
?
A manufacturing firm would not have need for which of the following budgets?
Sales budget
Production budget
Cash budget
Merchandise purchases budget
?
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5,300 units
6,800 units
4,500 units
5,000 units
?
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Direct labour hours for the 3rd quarter will be 66,000
Direct labour cost for the 4th quarter cannot be determined
Direct labour cost for the 2nd quarter will be $192,000
150,000 sales units are projected for the 4th quarter
?
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remained constant over the budgeted production
decreased over the budgeted production
increased over the budgeted production
cannot be determined from the information provided
?
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$8,000
$6,000
$9,000
$3,000
