Short-Term Budgeting

Question 1

a realistic plan expressed in quantitative terms for a certain future period of time.

Answer 1

Budget

Question 2

composed of key management persons who are responsible for overall policy matters relating to the budget program and for coordinating the preparation of the budget itself.

Answer 2

BUDGET COMMITEE

Question 3

goals and objectives identified in the budgeting process can serve as __________ or standards for evaluating performance.

Answer 3

benchmarks

Question 4

revised on a regular basis.

Answer 4

Continuous (Rolling Budget)

Question 5

based on only one level of activity (sales or production volume).

Answer 5

Fixed Budget

Question 6

a series of budgets prepared for many levels of activity.

Answer 6

Flexible Budget

Question 7

the current period’s budget is adjusted to allow for changes planned for the coming period.

Answer 7

Incremental

Question 8

prepared every period from a base of zero, regardless of previous results.

Answer 8

Zero based budgeting

Question 9

revenues and expenses are estimated over the product’s entire life cycle.

Answer 9

Life cycle

Question 10

applies the ABC principles and procedures.

Answer 10

Activity-based

Question 11

assumes the continuous improvement of products and processes.

Answer 11

Kaizen

Question 12

the process is dependent on the organizational structure and purposes.

Answer 12

THE BUDGETING PROCESS

Question 13

encompasses the organization’s operating and financial plans for a certain future period of time.

Answer 13

Master budget

Question 14

period of time = ?

Answer 14

budget period

Question 15

the master budget starts with the preparation of the _____.

Answer 15

Sales Budget

Question 16

the projected amount of units a company anticipates selling in a set period of time and the revenue it could earn. it is a forecast based on trends and the business environment

Answer 16

Sales Budget

Question 17

based on the budgeted sales and inventory policies.
Inventory policy is based on the number of units to be sold and the desired level of inventory.

Answer 17

Production Budget

Question 18

based on the budgeted production.

Answer 18

Direct Materials Budget

Question 19

based on the budgeted production and the number of standard direct labor hours needed per unit of production.

Answer 19

Direct Labor Budget

Question 20

is constant in total and the std FOH rate is based on normal capacity.

Answer 20

Fixed overhead

Question 21

In _______ the std FOH rate is considered constant.

Answer 21

short term budgeting

Question 22

Unit ____ cost is constant.

Answer 22

Variable

Question 23

Total variable OH costs change in relation to the ___________.

Answer 23

level of production.