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.( )

Solutions

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 1 year ago

Next > < Previous

Related Solutions

The budgeted income statement is typically prepared before the budgeted balance sheet. True False

The statement of cash flows must be prepared before the balance sheet is prepared. True False

TRUE OR FALSE 1. Selling and administrative costs are always period costs on any type of...

TRUE OR FALSE 1. Selling and administrative costs are always period costs on any type of company’s income statement 2. Costs that a manager can influence significantly are classified as uncontrollable costs of that manager 3. When goods are sold, their costs are transferred to Finished Goods Inventory 4. Equivalent-unit calculations are necessary to allocate manufacturing costs between units sold and ending work in process 5 Engineering design costs are typically known as batch-level activities 6 Activity-based costing systems have...

Which of the following statements is false with respect to the selling and administrative expense budget?...

Which of the following statements is false with respect to the selling and administrative expense budget? Multiple Choice It includes depreciation expense even though it is not a cash flow. It estimates the cash disbursements for selling and administrative expenses that appear in the cash budget. It includes estimated variable and fixed selling and administrative expenses. It impacts the budgeted cost of goods sold reported on the income statement.

The budget director for Adams Cleaning Services prepared the following list of expected selling and administrative...

The budget director for Adams Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments...

The budget director for Campbell Cleaning Services prepared the following list of expected selling and administrative...

The budget director for Campbell Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Complete the schedule of cash payments for...

The budget director for Martin Washing Services prepared the following list of expected selling and administrative...

The budget director for Martin Washing Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Complete the schedule of cash payments for...

The budget director for Vernon Cleaning Services prepared thefollowing list of expected selling and administrative...

The budget director for Vernon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments...

The budget director for Fanning Cleaning Services prepared the following list of expected selling and administrative...

The budget director for Fanning Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances. Required Complete the schedule of cash payments...

Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary...

Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses $0 $0 $0 Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 [The following information applies to the questions displayed below.] Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company...

Subjects