In: Accounting
1.
The following is true of the operational budget, except for:
Select one:
a. It has a short-term focus, usually one-year
b. It sets a plan for the purchase of assets
c. It is concerned with the cash effect of sales and expenses
d. It contains a production budget
2.
To begin the operational budgeting process, the first budget to complete is the:
Select one:
a. Production budget
b. Direct materials budget
c. Selling and administrative budget
d. Sales budget
3.
The sales budget has two primary parts. Part 1 projects total sales on a monthly basis and Part 2 calculates the month in which the sales will be received in cash. For which one of the following businesses would Part 1 and Part 2 be exactly the same?
Select one:
a. A business that only allows customers to pay by credit card at the time of sale
b. A business that allows customers to partially pay at the time of service and pay the rest over 60 days
c. A business that requires all customers to prepay for services at least 60 days in advance
d. A business that allows monthly payment plans for all customers who have bad credit
4.
Which one of the following is the equations is used in the production budget?
Select one:
a. Current period sale (in units) + Beginning inventory (in units) + Ending Inventory (Units)
b. Current period sale (in units) + Beginning inventory (in units) - Ending Inventory (Units)
c. Current period sale (in units) - Beginning inventory (in units) - Ending Inventory (Units)
d. Current period sale (in units) - Beginning inventory (in units) + Ending Inventory (Units)
5.
The budget or schedule that provides necessary input data for the direct labor budget is the:
Select one:
a. Raw materials budget
b. Production budget
c. Cash Receipts budget
d. Capital budget