Budgeting Paper 20


Budgetary slack can best be described as


Mien Co. is budgeting sales of 53,000 units of product Nous for October 2012. The manufacture of one unit of Nous requires four kilos of chemical Loire. During October 2012, Mien plans to reduce the inventory of Loire by 50,000 kilos and increase the finished goods inventory of Nous by 6,000 units. There is no Nous work in process inventory. How many kilos of Loire is Mien budgeting to purchase in October 2012?


The master budget


Which of the following best describes tactical profit plans?


Which of the following budgeting systems focuses on improving operations?


Which of the following is included in a firm’s financial budget?


Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% the second month, and 4% will be uncollectible. The cash from accounts receivable that should be budgeted for September would be


Cook Co.’s total costs of operating five sales offices last year were $500,000, of which $70,000 represented fixed costs. Cook has determined that total costs are significantly influenced by the number of sales offices operated. Last year’s costs and number of sales offices can be used as the bases for predicting annual costs. What would be the budgeted costs for the coming year if Cook were to operate seven sales offices?


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