10/23 Class

Question 1

budgeting

Answer 1

forces managers to plan for the future
provides info to improve decision making and making better decisions
Ids in setting benchmarks for performance evaluation which helps motivate employees
improve communication

Question 2

master budget

Answer 2

sales budget
production budget
DM, DL, OH budget
Ending Finished Goods budget
COGS budget
budgeted income statement(
Cash Budget

Question 3

static budget

Answer 3

a single planned level of activity, performance evaluation is difficult when actual activity differs from the planned level of activity

Question 4

flex budget

Answer 4

may be prepared for any activity level in the relevant range

show costs that should have been incurred at the actual time

Question 5

efficiency

Answer 5

achieved when the business process is preformed the best possible way with little or no waste

Question 6

effectiveness

Answer 6

means that a manager achieves or exceeds the goals described by the static budget

Question 7

you have to know the order of profit planning

Answer 7

1. sales budget
2. production budget
3. DM budget
4. DL budget
5. Manuf OH budget
6. End fin goods inv budget
7. selling and admin exp budget
8. cash budget
9. budgeted inc statement
10. budgeted balance sheet