FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Budgetary Planning

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The formula for budgeted raw materials purchases is

A) Budgeted production units + Ending raw materials inventory - Beginning raw materials inventory.
B) Budgeted production units + Beginning raw materials inventory - Ending raw materials inventory.
C) Materials needed for production + Ending raw materials inventory - Beginning raw materials inventory.
D) Materials needed for production + Beginning raw materials inventory - Ending raw materials inventory.

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A top-down approach to budgeting is one that is

A) participative.
B) motivational.
C) imposed.
D) tight.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

Control is forward looking while planning is backward looking.Control is backward looking while planning is forward looking.

Budgeted direct labor hours are calculated as

Which of the following is not a benefit of budgeting?

Jared Inc.produces leather handbags.The sales budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 0.5 square meters of leather.Jared Inc.'s finished goods inventory policy is 10% of next month's sales needs.Jared Inc.'s leather inventory policy is 30% of next month's production needs.What will leather purchases be in August?

Which of the following would not be an example of a cost to include in a selling and administrative expense budget?

A detailed plan that translates the company's objectives into financial terms,identifying the resources and expenditures that will be required over the planning horizon is a

Participative budgeting allows employees throughout the organization to have input into the budget-setting process.This is the main purpose of participative budgeting.

Which of the following sequences is correct?

Crystal,Inc.has prepared the following budgets for March.In March,budgeted production is 1,000 units,budgeted sales is 1,200 units,and raw materials inventory unit costs will stay constant.What is budgeted cost of goods sold for March?

Atlantic,Inc.has prepared the following budgets for March.In March,budgeted production equals budgeted sales of 1,000 units,and raw materials inventory will stay constant.What is budgeted cost of goods sold for March?

Crystal,Inc.has prepared the following budgets for March.In March,budgeted production is 1,000 units,budgeted sales is 1,200 units,and raw materials inventory will stay constant.What is budgeted cost of goods sold for March?

A primary financial budget is the

Grover has forecast sales to be $125,000 in February,$135,000 in March,$150,000 in April,and $140,000 in May.The average cost of goods sold is 70% of sales.All sales are on made on credit and sales are collected 60% in the month of sale,and 40% the month following.What are budgeted cash receipts in March?

_____________ are the specific goals that managers want to achieve over a 5 to 10 year horizon.

Jillian Inc.produces leather handbags.The production budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour) .How much will be paid to skilled labor during the three months July through September?

Jackson Inc.produces leather handbags.The production budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 0.5 square meters of leather.Jackson Inc.'s leather inventory policy is 30% of next month's production needs.On July 1 leather inventory was expected to be 1,000 square meters.Leather is expected to cost $5.00 per square meter in June,but go up to $6.00 per square meter in July.What is the expected cost of leather purchases in July?

One advantage of participative budgeting is managers can build in budgetary slack.Budgetary slack is a drawback to participative budgeting,not an advantage.

Skybird has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Skybird's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 units.Monthly costs are budgeted as follows: What is budgeted manufacturing overhead cost for July?