CHAP 9 - W hich of the following are correct statements...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Which of the following are correct statements about a budget? a. It is a formal written statement of management's plans for a specified future time period. b. It becomes an important basis for evaluating performance. c. It promotes efficiency and serves as a deterrent to waste and inefficiency. d. All of these options are correct statements. Answer: D The primary benefits of budgeting include all of the following except it: a. requires only top management to plan ahead and formalize goals. b. creates an early warning system for potential problems. c. motivates personnel throughout the organization. d. provides definite objectives for evaluating performance. Answer: A The most common budget period is a: a. month b. year c. quarter d. week Answer: B Coordinating the preparation of the budget is the responsibility of the: a. treasurer b. president c. chief accountant d. budget committee Answer: D Long-range planning usually encompasses a period of: a. at least 5 years b. a quarter c. a year d. at least two years Answer: A Operating budgets include all of the following except the: a. budgeted income statement b. capital expenditure budget
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
sales budget d. production budget Answer: B Each of the other budgets in the master budget depends on the: a. Sales Budget b. Cash budget c. Production budget d. Budgeted income statement Answer: A In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to: a. desired ending direct materials. b. beginning direct materials. c. desired ending direct materials less beginning direct materials. d. beginning direct materials less desired ending direct materials. Answer: C The direct labor budget and the manufacturing overhead budget depend on the: a. sales budget b. cash budget c. production budget d. budgeted income statement Answer: C The important end-product of the operating budgets is the: a. budgeted balance sheet b. budgeted income statement c. cash budget d. production budget Answer: C Financial budgets consist of all of the following except the: a. budgeted balance sheet b. cash budget c. capital expenditure budget d. budgeted income statement Answer: D
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

CHAP 9 - W hich of the following are correct statements...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online