Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Question

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Answer 1

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

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Answer 2

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

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Answer 3

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

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Answer 4

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

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Answer 5

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

Answer 6

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.

Answer 7

Chapter 22, Problem 1MCQ

To determine

Identify the appropriate option for “A plan that reports the units of merchandise to be produced by a manufacturing company during the budget period is called a ______”

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

c. Production budget.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Production Budget: A budget to be prepared on the basis of expected sales and desired finished goods inventory during a period is called production budget. It presents the number of units required to produce to meet the demand for that product.

a. Capital expenditure budget reports about the estimated capital expenditure for the budgeted period. Hence, it is incorrect option.
b. Cash budget reports about the estimated cash flows for the budgeted period. Hence, it is incorrect option.
c. Production budget reports about the units of merchandise to be produced for the budgeted period. Hence, it is correct option.
d. Manufacturing budget reports about the estimated direct material, direct labour and overheads for the budgeted period. Hence, it is incorrect option.
e. Sales budget reports about the estimated future sales for the budgeted period. Hence, it is incorrect option.