Section_8___Chap_7 - AEM 323 Section Problem Set 8 Covering...

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AEM 323 Section Problem Set 8 Covering Material from Brewer Chapter 7 Problem 1 A. What is a budget? B. What is a zero-based budget? C. Why is a participative budget an effective management tool? D. How can an organization help to reduce the problems caused by budgetary slack? E. What is meant by the term responsibility accounting ? F. What is the difference between planning and control with regard to budgets? 1
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Problem 2 Fill out the following budgets using the information provided. Little Brewing Co. expects the following sales (in cases) over the upcoming year. Prices are set to increase 2.5% at the beginning of the 3 rd quarter. Little Brewing Co. Sales Budget For the Year Ending December 31, 2005 Quarter 1st 2nd 3rd 4th Budgeted Sales (units) 425 450 325 350 Selling price/unit 40.00 Total Sales All sales are made on account and are expected to be collected in the following pattern: 50% in the quarter of the sale and 48% in the following quarter. Little Brewing Co.
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Section_8___Chap_7 - AEM 323 Section Problem Set 8 Covering...

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