Reference no: EM13584278
1.After management has set short-term goals, the budgeting process typically starts with
a.a set of procedures or instructions.
b.input only from the accounting personnel.
c.the naming of an efficient coordinator or director.
d.a clearly defined timetable of events.
2.Which of the following budgets is a financial budget?
a.Cash budget
b.Cost of goods manufactured budget
c.Sales budget
d.Overhead budget
3.A combined set of operational budgets and a set of financial budgets for the entire organization is known as a
a.master budget.
b.flexible budget.
c.month-to-month budget.
d.constant budget.
4.Purchases of buildings and equipment are formally planned in the
a.budgeted balance sheet.
b.capital expenditures budget.
c.depreciation budget.
d.selling and administrative expense budget.
5.Which of the following forms the base of all operating budgets?
a.Direct materials purchases in units
b.Unit sales forecast
c.Capital expenditures budget
d.Production budget (units)
6.J. J. Johnson has decided to supplement his income by selling beehives. He expects to sell 25,000 hives in 2014. He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory. There is no ending work in process inventory. One beehive holds about 250 bees. The bees are purchased for $4.00 per 1,000 bees. The hives sell for $15.00 each.
How many beehives would the 2014 production budget, of Johnson, identify as needing to be produced?
a.30,300
b.24,700
c.25,300
d.25,000
7.Win Shield International manufactures trophies. Each trophy goes through two departments in the production process and requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.
Assuming the amount budgeted to be produced in March is 30,000 units, what is the budgeted direct labor cost of Win Shield for March?
a.$810,000
b.$840,000
c.$780,000
d.$540,000
8.Wean Corporation's budgeted balance sheet for the coming year shows total assets of $5,000,000 and total liabilities of $2,000,000. Common stock and retained earnings make up the entire stockholders' equity section of the balance sheet. Common stock remains at its beginning balance of $1,500,000. The projected net income for the year is $333,000. The company pays no dividends. What is the balance of retained earnings at the beginning of the budget period?
a.$1,167,000
b.$1,500,000
c.$1,067,000
d.$1,833,000
9.The cost of goods manufactured of a company is $850,000. The beginning and ending finished goods inventory are $360,000 and 250,000, respectively. Determine the cost of goods sold.
a.$610,000
b.$600,000
c.$960,000
d.$740,000
10.Lee Carter Inc. forecast of sales is as follows: July, $50,000; August, $80,000; September, $150,000. Sales are normally 75 percent cash and 25 percent credit. Credit sales are collected in full in the following month. Merchandise cost averages 70 percent of sales price. The company desires an inventory as of September 30 of $50,000. The inventory as of June 30 was $30,000. The accounts receivable had zero balance on June 30.
The July 31 balance of accounts receivable of Lee Carter will be
a.$27,500.
b.$12,500.
c.$20,000.
d.$42,500.
11.The last step in a master budget is to prepare a
a.budgeted balance sheet.
b.cash budget.
c.sales budget.
d.cost of goods manufactured budget.
12.Which type of budgeting considers inputs from employees at all levels of a company?
a.Participative budgeting
b.Target budgeting
c.Top-down budgeting
d.Selective budgeting