budgets

Question 1

The Master Budget

Answer 1

an integrated group of detailed budgets that outline the overall operating and financing plans for a specific period, usually one year; splits into two teams:

1) production budgets
2) selling and administrative budget

Question 2

operational budgeting

Answer 2

the next year in a manufacturing setting

Question 3

the sales budget

Answer 3

a schedule of projected sales over the budget period, which often includes a measure of revenue earned and cash collected from customers

Question 4

the production budget

Answer 4

a schedule of production requirements for the budget period

Question 5

the direct materials budget

Answer 5

a schedule of direct materials to be used during the budget period and direct materials to be purchased during that period

Question 6

the direct labor budget

Answer 6

a schedule of direct labor requirements for the budget period

Question 7

manufacturing overhead budget

Answer 7

a schedule of production costs other than those for direct labor and direct materials

Question 8

selling and administrative expense budget

Answer 8

a schedule for all non-production spending expected to occur during the budget period