Question

Includes the CEO, CFO and managers across the value chain The very first budget prepared Include the capital expenditures budget and the cash budgets Used to prepare the direct materials budget, the direct labor budget and the manufacturing overhead budget Expenses are overbudgeted and revenue is underbudgeted in order to make performance look better or to make sure resources are available if there are budget cuts later Budget that is continuously updated so there are 12 months of operations budgeted Merges the budgeted cash collections and cash payments to project the ending cash position Consists of all supporting budgets needed to create budgeted financial statements Every dollar in the budget must be justified Non-cash expenditures that need to be subtracted from operating expenses when calculating cash payments Budgets prepared for different levels of activity Involves input from lower level managers who have more detailed knowledge and will be more likely to be motivated by a budget they helped create Lending arrangement from a bank that allows money to be borrowed as needed Budgets used to develop the budgeted income statement Shows the company’s intentions to invest in new property, plant and equipment

1. Rolling budget 2. Participative budget 3. Budgetary slack 4. Budget committee 5. Zero-based budgeting 6. Master budget 7. Operating budgets 8. Financial budgets 9. Sales budget 10. Units to be produced 11. Capital expenditures budget 12. Bad debts and depreciation 13. Combined cash budget 14. Line of credit 15. Flexible budgets

Answer 1

Includes the CEO, CFO and managers across the value chain	4	Budget Committee
The Very First Budget Prepared	9	Sales Budget
Include the Capital Expenditures Budget and the Cash Budgets	8	Financial Budgets
Used to Prepare the Direct Materials Budget, the Direct Labor Budget and the manufacturing overhead budget	10	Units to be produced
Expenses are overbudgeted and Revenue is underbudgeted in order to make performance look better or to make sure resources are available if there are budget cuts later	3	Budgetary Slack
Budget that is continuously updated so there are 12 months of operations budgeted	1	Rolling Budget
Merges the budgeted cash collections and cash payments to project the ending cash position	13	Combined Cash Budget
Consists of all supporting budgets needed to create budgeted financial statements	6	Master Budget
Every dollar in the budget must be justified	5	Zero-based Budgeting
Non-cash expenditures that need to be subtracted from operating expenses when calculating cash payments	12	Bad debts and Depreciation
Budgets prepared for different levels of activity	15	Flexible Budgets
Involves input from lower level managers who have more detailed knowledge and will be more likely to be motivated by a budget they helped create	2	Participative Budget
Lending Arrangement from a Bank that allows money to be borrowed as needed	14	Line of Credit
Budgets used to develop the budgeted income statement	7	Operating Budgets
Shows the company's intentions to invest in new property, plant and equipment	11	Capital Expenditures Budget