WorksheetsLogos Managerial Accounting - Master Budgets
Total questions: 16
Worksheet time: 15mins
A budget is/does NOT
A primary method of communication
Promotes efficiency
A means to always a profitable company
Control device
Who is responsible for the budget?
Accountants
Shareholders
Investors
Management
The acronym for the primary benefits of budgeting is:
PDECMM
PDCEMM
PCDEMM
SVCFN
What is NOT one of the benefits of budgeting
Planning ahead
Knowing the future will always be correct
Creating early warning system
Motivating personnel
What is NOT one of the factors that is considered in sales forecasting?
Industry trends
Technological developments
Price changes
CEO's input
The two classes of budgets are:
Operating & Financial
Variable & Fixed
Sales & Product
Direct materials & Direct labor
This budget is always the first one to be prepared.
Production
Sales
Direct materials
Direct labor
This budget shows the units that must be produced to meet anticipated sales.
Direct materials
Master
Sales
Production
Production requirements formula is:
Budgeted sales units - Desired ending finished goods units - Beginning finished goods units = Required production untis
Budgeted sales units - Desired ending finished goods units - Beginning finished goods units = Required production units
Budgeted sales units + Desired ending finished good units - Beginning finished goods units = Required production units
Budgeted sales units + Desired ending finished goods units + Beginning finished goods units = Required production units
This budget shows both the quantity and cost of direct materials to be purchased.
Production
Direct materials
Indirect materials
Materials
The formula for direct materials quantity is:
Direct materials units required for production + Desired ending direct materials units - Beginning direct materials units = Required direct materials units to be purchased.
Direct materials units required for production - Desired ending direct materials units - Beginning direct materials units = Required direct materials units to be purchased.
Direct materials units required for production + Desired ending direct materials units + Beginning direct materials units = Required direct materials units to be purchased.
Direct materials units required for production - Desired ending direct materials units - Beginning direct materials units = Required direct materials units to be purchased.
Which of the following is not an operating budget?
Direct labor budget
Sales budget
Production budget
Cash budget
Beginning inventory in units 1,200
Sales budgeted for the quarter 426,000
Capacity in units of production facility 472,000
How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?
428,000
424,000
474,000
429,200
The production budget shows expected unit sales of 32,000. Beginning finished goods units are 3,600. Required production units are 33,600. What are the desired ending finished goods units?
2,000
3,600
6,400
5,200
The production budget shows that expected unit sales are 48,000. The total required units are 54,000. What are the required production units?
6,000
9,000
12,000
Cannot be determined from the data provided.
The direct materials budget shows:
Desired ending direct materials 48,000 pounds
Total materials required 69,000 pounds
Direct materials purchases 63,200 pounds
The total direct materials needed for production is
21,000 pounds
5,800 pounds
15,200 pounds
132,200 pounds
