Question

Use the following terms to complete the sentences that follow. Terms may be used once, more than once, or not at all:

1. The   is a set of interrelated budgets that constitutes a plan of action for a specific period. 2. The   establish goals for the company’s sales and production personnel. 3. A(n)   approach to budgeting is more likely to motivate people to work toward an organization’s goal than a(n)   approach. 4. Managers who intentionally understate expected sales or overstate expected expenses are creating       5. Comparing actual results to budgeted plans is an example of management performing its   function. 6. The starting point for preparing the master budget is the     7. The   provides information about a company’s expected revenue, expenses, and profitability for a period of time. 8. Using a(n)   when one budget period passes, another is automatically added at the end. 9. The   provides information about a company’s expected financial position at a specific point in time. 10. Once the   has been prepared, the raw materials purchases, the direct labor, and the manufacturing overhead budgets can be prepared.

Answer 1

1. Master Budget

2. Operating Budget

3. Participative Budget

4. Budgetary Slack

5. Controlling

6. Sales Budget

7. Budgeted Income Statement

8. Continuous Budget

9. Budgeted Balance Sheet

10. Production Budget