1. A budget aids in _______. (Points : 1)
2. The preparation of an organization's budget _______. (Points : 1)
3. When actual performance varies from the budgeted performance, managers will be more likely to revise future budgets if the variances were _______. (Points : 1)
4. Strategic planning is _______. (Points : 1)
5. Tactical planning usually involves which level of management? (Points : 1)
6. Which of the following is not an "operating" budget? (Points : 1)
7. The master budget is a _______. (Points : 1)
8. Chronologically, the first part of the master budget to be prepared would be the _______. (Points : 1)
9. It is least likely that a production budget revision would cause a revision in the ______. (Points : 1)
10. Chronologically, in what order are the sales, purchases, and production budgets prepared? (Points : 1)
11. The amount of raw material purchased in a period may be different than the amount of material used that period because _______. (Points : 1)
12. Which of the following equations can be used to budget purchases?
(BI = beginning inventory, EI = ending inventory desired, CGS = budgeted cost of goods sold, P = budgeted purchases)
(Points : 1)
13. A company that maintains a raw material inventory, which is based on the following month's production needs, will purchase less material than it uses in a month where _______. (Points : 1)
14. The budgeted amount of selling and administrative expense for a period can be found in the ______. (Points : 1)
15. The budgeted payment for labor cost each period would be found in the _______. (Points : 1)
16. The primary reason that managers impose a minimum cash balance in the cash budget is _______. (Points : 1)
17. The pro forma income statement is not a component of the _______. (Points : 1)
18. A budget that includes a 12-month planning period at all times is called a ____ budget. (Points : 1)
19. Slack in operating budgets ______. (Points : 1)
20. Ball Company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales. For the forthcoming month of March, Ball has budgeted the beginning inventory at 30,000 units and the ending inventory at 33,000 units. This suggests that ______. (Points : 1)
Click here for the solution: Multiple Choice: A budget aids in
