Concept explainers
Using Terms to Complete Sentences about Budgets
Use the following terms to complete the sentences that follow .Terms may be used once, more than once, or not at all:
1. The______ is a set of interrelated budgets that constitutes a plan of action for a specific period.
2. The______ establish goals for the company’s sales and production personnel.
3. A(n) ______ approach to budgeting is more likely to motivate people to work toward an organization’s goal than a(n) ______approach.
4. Managers who intentionally understate expected sales or overstate expected expenses are creating______.
5. Comparing actual results to budgeted plans is an example of management performing its______ function.
6. The starting point for preparing the
7. The______ provides information about a company’s expected revenue, expenses, and profitability for a period of time.
8. Using a(n) ______, when one budget period passes, another is automatically added at the end.
9. The______ provides information about a company’s expected financial position at a specific point in time.
10. Once the______ has been prepared, the raw materials purchases, the direct Labor, and the manufacturing overhead budgets can be prepared.
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Loose-leaf For Managerial Accounting
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- Which of the following includes only financial budgets? capital asset budget, budgeted income statement, sales budget production budget, capital asset budget, budgeted balance sheet cash budget, budgeted balance sheet, capital asset budget budgeted income statement, direct material purchases budget, cash budgetarrow_forwardExplain zero-based budgeting and how it differs from the traditional approach to preparing next years budget.arrow_forwardBudgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a budgeted income statement for May.arrow_forward
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