Quiz - Practice

Budget:  a formal written statement of management’s plans for

• Any Future time period

• a specified future time period

• Present and Future time Period

•  

  any specified time period

Accounting generally has the responsibility for

• setting company goals.

• administration of the budget.

• enforcing the budget

• expressing the budget in financial terms.

Budgeting is usually most closely associated with which management function?

• Planning

• Directing

• Motivating

• Controlling

A common starting point in the budgeting process is

• expected future net income.

• past performance.

• to motivate the sales force.

• a clean slate, with no expectations.

I am going to Travel in Summer, What should I do?

• Travelling Budget Plan

• Sales Budget

• Production Budget

• Book A Ticket Immediately

A budget period should be

• monthly.

• for a year or more.

• long-term.

• long enough to provide an obtainable goal under normal business conditions.

Which of the following is not an operating budget?

• Direct labor budget

• Sales budget

• Production budget

• Cash budget

The starting point in preparing a master budget is the preparation of the

• production budget.

• sales budget.

• purchasing budget.

• personnel budget.

A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. What is the June sales?

• 63000

• 10500

• 9450

• 73500

Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30 inventory was 1,800 units. How Many Units should company Produce in December?

• 2840

• 8640

• 5040

• 2960