Question 3
Financial budgets must be completed before the operating budgets can be prepared.
Question 4
The budgeted income statement indicates the expected profitability of operations for the
next year
Question 5
The budget itself and the administration of the budget are entirely accounting
responsibilities
Question 6
Why are budgets useful in the planning process?
Question 7
Which of the following statements about budget acceptance in an organization is true?
Question 8
The budget committee would not normally include the
Question 9
Which of the following is not an operating budget?
Question 10
The production budget shows expected unit sales are 100,000. The required production
units are 104,000. What are the beginning and desired ending finished goods units,
respectively?
Question 11
A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for
February 2013. The company has a policy of having an inventory of units on hand at the
end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200
units of inventory on hand on December 31, 2012, how many units should be produced in
January, 2013 in order for the company to meet its goals?
Question 12
The following information is taken from the production budget for the first quarter:
Beginning inventory in units
Sales budgeted for the quarter
Production capacity in units
1,200
456,000
472,000