True OR False 1- The selling and administrative budget is typically prepared before the cash budget.( ...

True OR False

1- The selling and administrative budget is typically prepared before the cash budget.( )

2-The cash budget is the starting point in preparing the master budget.( )

3-Control involves developing goals and preparing various budgets to achieve those goals.( )

4-The budgeted income statement is typically prepared before the budgeted balance sheet. ( )

5- In the merchandise purchases budget, the required purchases (in units) for a period can be determined by subtracting the beginning merchandise inventory (in units) from the budgeted sales (in units) and desired ending merchandise inventory (in units).( )

6- The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.( )

7- The direct labor budget shows the direct labor-hours required to satisfy the production budget.( )

8- The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.( )

9- In the manufacturing overhead budget, the non-cash charges (such as depreciation) are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead.( )

10- The disbursements section of a cash budget consists of all cash payments for the period except cash payments for dividends.( )

Expert Solution

1)	TRUE	Since the amount paid for selling and administrative expense would be required to prepare cash budget
2)	FALSE	Generally cash budget is prepare just before preparing budgeted income statement
3)	TRUE	Budget gives a standard and then actual data gets compared with the standard and corrective measures are taken
4)	TRUE	Since net income would be required to compute ending retained earnings balance
5)	FALSE	Format: Budgeted units to be produced + Desired ending inventory - Beginning Inventory
6)	TRUE	Format: Budgeted sales + Desired ending inventory - Beginning Inventory
7)	TRUE	It shows the total direct labor hours required for production along with total direct labor cost
8)	TRUE	Since, Direct Materials and Direct Labor is considered as direct costs and not indirect costs
9)	TRUE	Since no cash gets disbursed due to charging depreciation, we need to deduct the same
10)	FALSE	Dividends are also taken into consideration in that section

ekkarill92 answered 2 years ago

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