Cost Planning (Accounting II)

Front

In which order must the following budgets be prepared: cash budget, balance sheet budget, sales budget, income statement budget, and purchases budget?

Back

1, 2, 3, 5, 4.

Front

The cash budget is prepared after the budgeted income statement.

Back

after the budgeted income statement.

Front

What has many keys, but can’t even open a single door?

Back

PIANO

Front

Which of the following is not a benefit of budgeting?
1. Budgeting provides benchmarks against which performance can be measured.
2. Budgeting forces managers to concentrate on planning and to formalize their planning efforts.
3. Budgeting helps managers build favorable variances into the performance evaluation process.
4. Budgeting requires different functional areas of the firm to communicate and coordinate activities.
5. All of the above are benefits of budgeting.

Back

Budgeting helps managers build favorable variances into the performance evaluation process.

Front

Calculate the budgeted unit sales for September given that Seebold, Inc. has 4,500 units in finished goods on July 1 and ending inventory of finished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units.

Back

21,000.

Front

What gets wet while drying?

Back

TOWEL

Front

Calculate the number of units scheduled for production in March given that the ending inventory of finished goods for each month must be equal to 40% of the next month’s budgeted unit sales, and finished goods inventory on January 1 was 600 units.

Back

1,525.

Front

Where are the lakes always empty, the mountains always flat and the rivers always still?

Back

MAP

Front

Budgeted collections for June based on Dax, Inc.'s accounts receivable collection pattern: 30% in the month of sale, 60% in the next month, and 8% in the second month after the sale; 2% are uncollectible. Budgeted sales are March, $16,000; April, $22,000; May, $19,000; and June, $23,000.

Back

$20,060.

Front

Attainable standards, as compared to ideal standards, are more likely to elicit employee enthusiasm.

Back

are more likely to elicit employee enthusiasm.