chapt 9 budgeting

Question 1

DM and DL budget sheet steps

Answer 1

units of production
x DL hrs/ unit or DM / unit
= production needs or labour hrs req.
+ ending invention or guaranteed LH
= total producion needs or labour hours paid
- beg inv
= materials to be purchased

Question 2

cash reciepts are

Answer 2

collections from customers

Question 3

cash disbursements

Answer 3

payments to suppliers

Question 4

cash budget sheet steps

Answer 4

cash bal beg
add cash collections
= total cash avaliable
- cash disbursements
= excess or (defiency) of cash avaliable

financing
- borrowing
repayments
interest
total financing
= ending cash balance

Question 5

financing on cash budget sheet should help balance ending cash bal

Question 6

income statement steps

Answer 6

sales
less cogs (beg inv + purchases - ending )
= gross margin
less sa exp
= op income
int exp
= net income

Question 7

interest

Question 8

5 purpises of budgeting systems

Answer 8

plannign
controlling profits
communication and coordination
allocating resources
evaluating performance

Question 9

4 types of responsiblity centres

Answer 9

cost
rev
profits
investments