Difficulty 2 objective 2 66 budgets should a be

Difficulty : 2 Objective : 2
66. Budgets should
a. be flexible.
b. be administered rigidly.
c. be developed for short periods of time.
d. include only variable costs.
Answer : a Difficulty : 2 Objective : 2
67. Operating budgets include all EXCEPT
Difficulty : 1 Objective : 3
68. Operating budgets include the
Difficulty : 1 Objective : 3
69. The operating budget process generally concludes with the preparation of the
Difficulty : 1 Objective : 3
Chapter 6 Page 10

70. Financial budgets include the
a. capital expenditures budget.
b. production budget.
c. marketing costs budget.
d. administrative costs budget.
Answer : a Difficulty : 1 Objective : 3
71. __________ includes a budgeted statement of cash flows and a budgeted balance sheet.
Difficulty : 1 Objective : 3
72. The order to follow when preparing the operating budget is
Difficulty : 2 Objective : 3
73. In which order are the following developed? First to last:
A = Production budget B = Direct materials costs budget
C = Budgeted income statement D = Revenues budget
Difficulty : 2 Objective : 3
74. The budgeting process is MOST strongly influenced by
a. the capital budget.
b. the budgeted statement of cash flows.
c. the sales forecast.
d. the production budget.
Answer : c