2. State whether the following sentences are TRUE or FALSEASTARINS#Statements1The production budget is typically prepared prior to the salesbudget.One benefit of budgeting is that it coordinates the activities ofthe entire organization.The master budget is a network consisting of many separatebudgets that are interdependent.Sales forecasts are drawn up after the cash budget has beencompleted because only then are the funds available formarketing known.5A sales budget is a detailed schedule showing the expected salesfor the budget period; typically, it is expressed in both dollarsand units of product.234TRUE or FALSE3. Which of the following represents the normal sequence in which the indicated budgets areprepared?A. Direct Materials, Cash, SalesB. Production, Cash, Income StatementC. Sales, Balance Sheet, Direct LaborD. Production, Manufacturing Overhead, Sales 12804. Which of the following represents the correct order in which the indicated budget documents for amanufacturing company would be prepared?A. Sales budget, cash budget, direct materials budget, direct labor budgetB. Production budget, sales budget, direct materials budget, direct labor budgetC. Sales budget, cash budget, production budget, direct materials budgetD. Selling and administrative expense budget, cash budget, budgeted income statement, budgetedbalance sheet5. Which of the following statements is not correct?A. The sales budget is the starting point in preparing the master budget.B. The sales budget is constructed by multiplying the expected sales in units by the sales price.C. The sales budget generally is accompanied by a computation of expected cash receipts for theforthcoming budget period.D. The cash budget must be prepared prior to the sales budget because managers want to knowthe expected cash collections on sales made to customers in prior periods before projectingsales for the current period.6. Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year.Jan$15,000$100,000Cash sales.......FebMar$24,000 $18,000$120,000 $90,000Apr$14,000$70,000Credit sales.....On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following

"Since you have asked multiple questions, the first question was answered for you. If you want the…

2. State whether the following sentences are TRUE or FALSE # Statements 1 2 One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. The production budget is typically prepared prior to the sales budget. 3 TRUE or FALSE

2. State whether the following sentences are TRUE or FALSE # Statements 1 2 One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. The production budget is typically prepared prior to the sales budget. 3 TRUE or FALSE

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 5TIF: Static budget for a service company A hank manager of City Savings Rank Inc, uses the managerial...

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Which of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.
Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify the document that contains each of these balances. A. cash B. accounts receivable C. finished goods inventory D. accounts payable E. equipment purchases
Match the definitions 1 through 8 with the term or phrase a through h. a. Budget e. Master budget b. Top-down budgeting f. Budgetary slack c. Participatory budgeting g. Sales budget d. Cash budget h. Budgeted income statement 1. Shows expected cash inflows and outflows and helps determine financing needs. 2. A plan showing units to be sold; the usual starting point in the master budget process. 3. A report that shows predicted revenues and expenses for a budgeting period. 4. A formal statement of future plans, usually expressed in monetary terms. 5. Approach in which top management passes down a budget without employee input. 6. A budgetary cushion used to meet performance targets. 7. A comprehensive business plan that includes operating, investing, and financing budgets. 8. Employees affected by a budget help in preparing it.
true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)
Which of the following is NOT true of the budgeting process? Question 8 options: Budgeting provides feedback to management to aid in assessing how well it's reaching its goals. Budgets force managers to plan for the future. Budgets force managers to consider relations among operations across the entire value chain. The performance report is prepared as part of the master budget.
I. A tight budget may create ______. Why? a. budgetary slack b. discouragement c. a flexible budget d. a "spend it or lose it" mentality. 2. The first step of the budget process is ______. Why? a. plan b. direct c. control d. feedback 3. Static budgets are often by ______. Why? a. production departments b. administrative departments c. responsibility centers d. capital projects 4. The total estimated sales for the coming year is 250,000 units. the estimated inventory at the beginning of the year is 22,500 units, and the desired inventory at the end of the year is 30,000 units. The total production indicated in the production budget is _____. Show your solution. 5. Dix Company expects $650,000 of credit sales in March and $800,000 of credit sales in April. Dix historically collects 70% of its sales in the month of sales and 30% in the following month. How much cash does Dix expect to collect in April? Show your solution.…
1. Which of the following is true?a) The direct materials purchase budget is determined from the direct labour budget.b) The only budget providing input into the revenue budget is the sales budget.c) The direct materials purchase budget and the capital expenditures budget are both determined from the production budget.d) The selling and administrative expense budget is input into the forecasted cost of goods sold. 2. Which of the following describes decision making at the tactical orfunctional level?a) Senior management will need to make long-term decisions about the future of the whole business. Therefore, strategic decisions will be made about which markets the business is to operate in, whether to bid to take over a competitor, etc.b) These decisions are made in focusing on the medium-term future of the business, say looking at the 12-18-month pricing strategy for a product, deciding what products to stock over the summer months, etc. They tend to be focused on particular business…
1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False 2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans. a. True b. False 3. A flexible budget is not designed to change with changes in activity level. a. True b. False 4. The production budget comes before the materials purchases budget. a.True b. False 5. The starting point for the master budget is an assessment of anticipated production next year. a. False b. True
Define the following with formulaes if possible: Please write full definations. 1. Sales Budget 2. Cash Receipt Budget 3. Purchases Budget 4. Cash Payment Budget 5. Summary Cash Budget 6. Short Term Financial Needs 7. Budgeted Income Statement 8. Budgeted Balance Sheet
4. The starting point in preparing a comprehensive budget is - Group of answer choices - the cash budget - a sales forecast - the budgeted income statement