Question

In: Accounting

-budgeted income statement – direct materials budget – production budget – sales budget -sales budget –...

-budgeted income statement – direct materials budget – production budget – sales budget

-sales budget – production budget – direct materials budget – budgeted income statement

Who would typically be responsible for the direct material quantity variance?

-the production manager

-the chief financial officer

-the purchasing manager

-the human resources manager

Which of the following is not a component of the operating budget?

-sales budget

-selling and administrative budget

-Budgeted balance sheet

-raw materials purchases budget

Top-down budgeting is:

-when the local managers impose a budget on the top management

-when customers impose a budget on top management of the company.

-when top management sets the budget and imposes it on lower levels of the organization

-when top management imposes a budget on the board of directors.

The number of units included in the production budget:

-are always the same as the number of units in the sales budget.

-depends on the raw materials purchases budget.

-is based on the number of units in the sales budget, and increased for increases in the selling and administrative expense budget to account for increased demand.

-may differ from the number of units in the sales budget, depending on ending inventory goals.

Solutions

Expert Solution

1) Who would typically be responsible for the direct material quantity variance?

Solution: the production manager

Explanation: The production manager is responsible for the direct material quantity variance

2) Which of the following is not a component of the operating budget?

Solution: Budgeted balance sheet

Explanation: An operating budget includes the expenses and revenue targets a company sets for each year, quarter and month

3) Top-down budgeting is:

Solution: when top management sets the budget and imposes it on lower levels of the organization

Explanation: Top-down budgeting refers to a budget method when the senior management develops a high-level budget for the company.

4) The number of units included in the production budget:

Solution: may differ from the number of units in the sales budget, depending on ending inventory goals

Explanation: The number of units in the sales budget and the production budget may differ due to the change in ending goods inventory levels

ekkarill92 answered 1 year ago

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