Question 1

The master budget process nearly always begins with the preparation of the ___________________ and usually finishes with the preparation of the ______________________,the ________________,and the ______________________.

Accepted Answer

the first answer (sales budget) must appear in the first blank; the last three solutions can appear in any order

Question 2

Clic,Inc.,provides the following data for the next four months:
  Desired Ending Inventory:
Raw Materials = 30% of next month's production needs
Finished Goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Required:
Calculate the amount of purchases of raw materials in pounds for April and May.

Accepted Answer

The answer of Clic,Inc.,provides the following data for the next...

Question 3

The production budget for Sergei Company revealed the following production volume for the months of July - September.Each unit produced requires 2 hours of direct labor.The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.Prepare a direct labor budget for Sergei Company for July - September.

Accepted Answer

The answer of The production budget for Sergei Company revealed...

Question 4

The ______________________________ shows the budgeted costs for direct materials,direct labor,and overhead,based on the budgeted production volume from the production budget.

Accepted Answer

The answer of The ______________________________ shows the budgeted costs for...

Question 5

The budget process is usually administered by a _____________________.

Accepted Answer

The answer of The budget process is usually administered by...

Question 6

A ________________________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

Accepted Answer

The answer of A ________________________ is a continuously revised budget...

Question 7

Sweeny Co.is preparing a cash budget for the second quarter of the coming year.The following data have been forecasted:
  Additional data:
(1)Sales are 40% cash and 60% credit.The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter.Total sales in March were $125,000.
(2)Purchases are all on credit,with 40% paid in the month of purchase and the balance paid in the following month.
(3)Operating expenses are paid in the month they are incurred.
(4)A minimum cash balance of $40,000 is required at the end of each month.
(5)Loans are used to maintain the minimum cash balance.At the end of each month,interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month.Repayments are made whenever excess cash is available.
Prepare the company's cash budget for May.Show the ending loan balance at May 31.

Accepted Answer

The answer of Sweeny Co.is preparing a cash budget for...

Question 8

The ___________ shows expected cash inflows and outflows during the budget period.

Accepted Answer

The answer of The ___________ shows expected cash inflows and...

Question 9

Peru,Inc.is preparing its master budget for the first quarter of its calendar year.The following forecasted data relate to the first quarter:
  Prepare a budgeted income statement for this first quarter.

Accepted Answer

The answer of Peru,Inc.is preparing its master budget for the...

Question 10

There are at least five benefits from budgeting.Identify two of these benefits:
(1)_______________________________________
(2)_______________________________________

Accepted Answer

any two of the above five answers are acceptable solutions

Question 11

There are three major subgroups of the master budget.These are _________________,___________________,and _______________________.

Accepted Answer

answers can appear in any order

Question 12

Match between columns
                        Premises: A plan that lists the types and amounts of selling expenses expected during the budget period.
A plan that shows the predicted costs for direct materials,direct labor,and overhead costs to be incurred in manufacturing the units in the production budget.
An accounting report that presents predicted amounts of the company's assets, liabilities,and equity as of the end of the budget period.
A plan that shows the expected cash inflows and outflows during the budget period,including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.
A new set of budgets added to replace the ones that have lapsed as each budget period goes by.
The practice of preparing budgets for a selected number of several periods and revising those budgets as each period is completed.
A plan showing the units of goods to be sold and the sales to be derived; usually the starting point in the budgeting process.
A formal statement of future plans,usually expressed in monetary terms.
A plan that lists dollar amounts to be both received from disposing of plant assets and spent on purchasing additional plant assets to carry out the budgeted business activities.
A plan showing the number of units to be produced each month.

Accepted Answer

The Answer of Manufacturing budget and Selling expense budget and is...

Question 13

Match between columns
                        Premises: A comprehensive business plan that includes specific plans for expected sales,the units of product to be produced,the merchandise or materials to be purchased,the expenses to be incurred,the long-term assets to be purchased,and the amounts of cash to be borrowed or loans to be repaid,as well as a budgeted income statement and balance sheet.
A plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.
A plan that shows predicted operating expenses not included in the selling expenses budget.
A quantity of inventory or materials over the minimum to reduce the risk of running short.
A plan showing the units of goods to be sold and the sales to be derived; the usual starting point in the budgeting process.
A plan that shows the expected cash inflows and cash outflows during the budget period,including receipts from any loans needed to maintain a minimum cash balance and repayments of such loans.
A formal statement of a company's future plans,usually expressed in monetary terms.
An accounting report that presents predicted amounts of the company's revenuesand expenses for the budgeting period.
An accounting report that presents predicted amounts of the company's assets,liabilities,and equity balances at the end of the budget period.

Accepted Answer

The Answer of Budgeted income statement and Safety stock and is...

Quiz 22: Master Budgets and Planning

The master budget process nearly always begins with the preparation of the _ and usually finishes with the preparation of the ,the ,and the ______.

The ______________________________ shows the budgeted costs for direct materials,direct labor,and overhead,based on the budgeted production volume from the production budget.

The budget process is usually administered by a _____________________.

A ________________________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

The ___________ shows expected cash inflows and outflows during the budget period.

Peru,Inc.is preparing its master budget for the first quarter of its calendar year.The following forecasted data relate to the first quarter: Prepare a budgeted income statement for this first quarter.

There are at least five benefits from budgeting.Identify two of these benefits: (1)_ (2)_

There are three major subgroups of the master budget.These are _______,_,and _______________.

Presented below are terms or phrases preceded by letters a through j and followed by a list of definitions 1 through 10.Match the correct definitions with the terms or phrases by placing the letter of the term or phrase in the answer space provided at the beginning of the definition.

Match the definitions 1 through 9 with the correct term or phrase a through i.

Quiz 22: Master Budgets and Planning

The master budget process nearly always begins with the preparation of the ___________________ and usually finishes with the preparation of the ______________________,the ________________,and the ______________________.

The ______________________________ shows the budgeted costs for direct materials,direct labor,and overhead,based on the budgeted production volume from the production budget.

The budget process is usually administered by a _____________________.

A ________________________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

The ___________ shows expected cash inflows and outflows during the budget period.

Peru,Inc.is preparing its master budget for the first quarter of its calendar year.The following forecasted data relate to the first quarter: Prepare a budgeted income statement for this first quarter.

There are at least five benefits from budgeting.Identify two of these benefits: (1)_______________________________________ (2)_______________________________________

There are three major subgroups of the master budget.These are _________________,___________________,and _______________________.

Presented below are terms or phrases preceded by letters a through j and followed by a list of definitions 1 through 10.Match the correct definitions with the terms or phrases by placing the letter of the term or phrase in the answer space provided at the beginning of the definition.

Match the definitions 1 through 9 with the correct term or phrase a through i.

The master budget process nearly always begins with the preparation of the _ and usually finishes with the preparation of the ,the ,and the ______.

There are at least five benefits from budgeting.Identify two of these benefits: (1)_ (2)_

There are three major subgroups of the master budget.These are _______,_,and _______________.