Exam 3 Flashcards
The first step in the budgeting process is preparing the ______ budget.
Sales
In a manufacturing company, the ___ budget is used to determine the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget. (Enter only one word per blank.)
Production
A detailed plan for the future that is usually expressed in formal quantitative terms is a(n)____ . (Enter only one word per blank)
Budget
True or false: Control involves developing goals and preparing various budgets to achieve those goals.
False
The amount of goods for resale to be acquired from suppliers during the period is shown on the ___ ___budget. (Enter only one word per blank.)
Merchandise Purchases
Budgets ______.
a. focus on what has happened in past
b. primarily help managers with day-to-day emergencies
c. communicate management’s plan throughout the organization
c. communicate management’s plan throughout the organization
A budget that is prepared with the full cooperation of managers at all levels is a self-imposed or___ budget. (Enter only one word per blank.)
Participative
An integrated business plan that formally lays out the company’s goals is called the ______ budget.
Master
Both the production and selling and administrative expense budgets are prepared using information directly from the ___ budget. (Enter only one word per blank.)
Sales
Because all other parts of the budget depend on it, if the ______ budget is inaccurate, the rest of the budget will be inaccurate.
Sales
In a manufacturing company, which budget is used as the basis for creating the direct materials budget, the direct labor budget, and the manufacturing overhead budget?
Production
The amount of goods to be acquired from suppliers during the period is shown on the _______ budget.
Merchandise purchases
A number of separate, but interdependent, budgets that formally lay out the company’s sales, production, and financial goals are contained in the ___ budget. (Enter only one word per blank.)
Master
Which of the following budgets are directly based on information from the sales budget?
a. Direct labor budget
b. Production budget
c. Selling and administrative expense budget
d. direct materials budget
a. production budget
b. selling and administrative expense budget
The cash budget uses information from several other budgets. Which of the following budgets is NOT used to prepare the cash budget?
a. direct labor
b. sales
c. production
d. selling and administrative
c. production
