Which of the following statements are correct? a. Planning is the process of establishing company-wide objectives b. A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms c. Accounting information makes major contributions to the budgeting process d. From accounting records, companies can obtain historical data on revenues, costs, and expenses these data are helpful in formulating future budget goals e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and b) are correct h. Statements b), c) and d) are correct
e. All of the above-named statements are correct
Which of the following characteristics represent primary benefits of budgeting? a. It requires all levels of management to plan ahead and provides definite objectives b. It creates an early warning system and facilitates the coordination of activities within the business c. It results in greater management awareness of the entity’s overall operations and the impact on operations of external factor d. It motivates personnel throughout the organization to meet planned objectives e. All of the above-named characteristics f. None of the above-named characteristics g. Characteristics a), b) and c) h. Characteristics b), c) and d)
e. All of the above-named characteristics
Which of the following statements are correct? a. The budget is developed within the framework of a sales forecast b. Budgeting and long-range planning are the same c. Budgeting and long-range planning are not the same, because of the time period involved (long-range planning usually encompasses a period of at least 5 years) d. Budgeting and long-range planning are not the same, because of the amount of detail that is presented (budgets are far less detailed, long-range planning is very detailed) e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and c) are correct h. Statements a), c) and d) are correct
g. Statements a) and c) are correct
Which of the following statements are correct? a. The budget is developed within the framework of a sales forecast b. Budgeting and long-range planning are the same c. Budgeting and long-range planning are not the same, because of the time period involved (long-range planning usually encompasses a period of at least 5 years) d. Budgeting and long-range planning are not the same, because of the amount of detail that is presented (budgets can be very detailed, long-range planning is far less detailed) e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and c) are correct h. Statements a), c) and d) are correct
h. Statements a), c) and d) are correct
Which of the following factors have to be considered in sales forecasting? a. General economic conditions and industry trends b. Market research studies as well as anticipated advertising and promotion c. Previous market share and changes in prices d. Technological developments e. All of the above-named factors f. None of the above-named factor g. Factors b) and c) h. Factors b), c) and d)
e. All of the above-named factors
Which of the following statements are correct? a. The master budget is a set of interrelated budgets that constitutes a plan of action for a specified time period b. The master budget contains operating and financial budgets c. The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit selling price d. The production budget shows the number of units of a product to produce to meet anticipated sales demand e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and b) are correct h. Statements c) and d) are correct
Which of the following statements are correct? a. Direct material budget is prepared by multiplying the required units of direct materials by the anticipated costs per unit b. The direct labor budget contains the quantity (hours) and cost of direct labor necessary to meet production requirements c. The manufacturing overhead budget shows the expected manufacturing overhead costs for the budget period d. The selling and administrative expense budget projects anticipated selling and administrative expenses for the budget period e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and d) are correct h. Statements b) and c) are correct
Which of the following statements are correct? a. Budgeted income statements indicate the expected profitability of operations for the budget period b. The cash budget contains three sections: cash receipts, cash disbursements and financing c. The budgeted balance sheet is a projection of financial position at the end of the budget period d. The budgeted balance sheet is a projection of financial position at the beginning of the budget period e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a), b) and c) are correct h. Statements a), b) and d) are correct
g. Statements a), b) and c) are correct
Which of the following statements are correct? a. A static budget is a projection of budget data at one level of activity b. Static budget is appropriate when the actual level of activity closely approximates the master budget activity level c. Static budget is appropriate when the behavior of the costs in response to changes in activity is fixed d. Flexible budget projects budget data for various levels of activity in essence, the flexible budget is a series of static budgets at different levels of activity e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and d) are correct h. Statements a), b) and c) are correct
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