Week 12 Budgeting

Question 1

a comprehensive financial plan for achieving the financial and operational goals of an organization

Answer 1

budget

Question 2

2 phases a budget assist on

Answer 2

1. planning phase
2. control phase

Question 3

developing objectives for acquisition and use of resources

Answer 3

planning phase

Question 4

steps taken by management to ensure that objectives are attained

Answer 4

control phase

Question 5

a detailed schedule that shows the expected sales for the budget period: typically it is expressed in both sales dollars and sales in units

Answer 5

sales budget

Question 6

an accurate this thing is the key to the entire budgeting process. all other parts of the master budget are dependent on this in some way

Answer 6

sales budget

Question 7

shows the cash expected to be collected in each budget period

Answer 7

schedule of expected cash collections

Question 8

along with a sales budget, the company should prepare a

Answer 8

schedule of expected cash collections

Question 9

calculates the number of units that must be produced each budget period in order to:
1. meet expected sales
2. maintain desired levels of ending inventory

Answer 9

production budget

Question 10

the production budget calculates the number of units that must be produced each budget period in order to

Answer 10

1. meet expected sales
2. maintain desired levels of ending inventory

Question 11

tells the amount of direct materials (in both dollars and unit of measure (i.e., pounds)) that must be purchased in order to:
1. meet budgeted production
2. maintain desired levels of ending inventory

Answer 11

direct materials purchases budget

Question 12

the direct materials purchases budget tells the amount of direct materials (in both dollars and unit of measure (i.e., pounds)) that must be purchased in order to

Answer 12

1. meet budgeted production
2. maintain desired levels of ending inventory

Question 13

both overhead and S&A expenses are

Answer 13

mixed costs

Question 14

the overhead and s&a expense budgets will have variable costs be in what form and fixed costs be in what form bc of their constants

Answer 14

variable costs (constant) in per unit
fixed costs (constant) in total

Question 15

details the expected inflows and outflows of cash for each budget period (typically done on a monthly basis)

Answer 15

cash budget

Question 16

which expense should never appear on the cash budget

Answer 16

depreciation (it is a non cash expense)

Question 17

exists if the total available cash is larger than the cash payments

Answer 17

excess

Question 18

exists if the total available cash is less than the cash payments

Answer 18

deficiency