AccTest2 - 1 a.productionbudget b. c. d. 2. a.

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1. The cash budget must be prepared before you can complete the:  a. production budget.  b. budgeted balance sheet.  c. raw materials purchases budget.  d. schedule of cash disbursements.        2. Which of the following is not a benefit of budgeting?        3. The master budget process usually begins with the:  4. A method of budgeting in which the cost of each program must be justified every year is  called:        5.Fairmont Inc. uses an accounting system that charges costs to the manager who has been  delegated the authority to make decisions concerning the costs. For example, if the sales  manager accepts a rush order that will result in higher than normal manufacturing costs, these  additional costs are charged to the sales manager because the authority to accept or decline  the rush order was given to the sales manager. This type of accounting system is known as:  a. responsibility accounting.  b. contribution accounting.  c. absorption accounting. 
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d. operational budgeting.        6. Budgeted sales in Allen Company over the next four months are given below:        Septemb er October Novembe r   Decemb er Budgeted  sales $100,000 $160,00 0 $180,000 $120,000 Twenty-five percent of the company's sales are for cash and 75% are on account. Collections  for sales on account follow a stable pattern as follows: 50% of a month's sales are collected in  the month of sale, 30% are collected in the month following sale, and 15% are collected in the  second month following sale. The remainder are uncollectible. Given these data, cash  collections for December should be: 
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