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Unformatted text preview: Multiple Choice Quiz (See related pages) 1 Which one of the following is NOT listed as an attribute of a budget? A) The budget is an organization's operating plan. B) The budget is a motivating device. C) The budget is a guarantee of actual results. D) The budget is a guideline for operations. E) The budget is a basis for performance evaluation. 2 __________ is a plan that identifies sources and uses of funds for budgeted operations to achieve the expected operating results for the period. A) financial budget. B) operating budget. C) continuous budget. D) capital budget. E) master budget. 3 Which one of the following is an external factor that would need to be considered in forming an initial budget proposal? A) changes in product design B) introduction of a new product C) changes in product mix D) competitors' actions E) adoption of a new manufacturing process USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 4 AND 5: Miller Company has the policy of maintaining 30% of the next month's sales on hand at the end of the current month. Projected sales for Product A in February, March, and April are 40,000 units, 48,000 units, and 80,000 units, respectively. The units cost $3 and can be sold for $5 per units after packaging. 4 How many units must be purchased in March? A) 14,400 B) 24,000 C) 42,400 D) 48,000 E) 57,600 5 What is the amount of inventory that will be reported on the budgeted balance sheet for March 31?...
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- Fall '11