Budgeting Quiz (page 7)

What is the starting point for other budgets in an enterprise?

• Materials Budget

• Cash Budget

• Sales Budget

• Production Budget

Which budget forecasts the cost of selling and distributing products?

• Manufacturing Overhead Cost Budget

• Production Budget

• Selling and Distribution Cost Budget

• Cash Budget

What does the production budget determine?

• Cash disbursements

• Cost of raw materials

• Number of units to be produced

• Total sales for the period

What is the cost of production budget based on?

• Production Budget

• Sales Budget

• Cash Budget

• Materials Budget

What does the materials budget determine?

• Quantity of raw materials required

• Total cash receipts

• Selling expenses

• Cost of manufacturing overheads

Which type of cost does the manufacturing overhead cost budget exclude?

• Direct materials

• Indirect materials

• Variable costs

• Fixed costs

What is the purpose of a cash budget?

• To estimate production costs

• To forecast sales

• To analyze cash flow

• To determine material requirements

Which budget is adjusted according to the production budget?

• Materials Budget

• Selling and Distribution Cost Budget

• Cash Budget

• Cost Production Budget

What type of costs are included in manufacturing overheads?

• Direct labour costs

• Sales expenses

• Production costs

• Indirect labour and materials