BUSINESS FINANCE QUIZ 5 (GROUP 4)

1. All of the following are characteristics of production budget. Except?

• A well thought out plan on how a business should make in a certain time.

• Typically created by quarterly or monthly.

• It includes planning, organizing, directing, and controlling an organization or institute.

• Determine the quantity on how much goods to produce to reach a specific sales target.

It is a financial plan that estimates sales income for a given time frame.

• Production Budget

• Sales Budget

• Ending Inventory Budget

• Allowance Budget

A financial report that makes a hypothetical outcome to project future financial performance.

• Selling and Administrative Expenses

• Pro-Forma Financial Investment

• Selling and Administrative Budget

• Pro-Forma Financial Statements

The first step in preparing a production budget is to write the given projected sales under each quarter.

• True

• False- Year

• False- Time

• False- Month

The financial step in preparing a production budget is to subtract the ending inventories from the total from the year.

• True

• False- beginning

• False- middle

• False- yearly