Reference no: EM132517585

Question 1: Which of the following is an operating budget? A. cash budget B. production budget C. tax budget D. capital budget

Question 2: Which approach is most likely to result in employee buy-in to the budget? A. top-down approach B. bottom-up approach C. total participation approach D. basing the budget on the prior year

Question 3: Which of the following is true in a bottom-up budgeting approach? A. Every expense needs to be justified. B. Supervisors tell departments their budget amount and the departments are free to work within those amounts. C. Departments budget their needs however they see fit. D. Departments determine their needs and relate them to the overall goals.

Question 4: Which of the operating budgets is prepared first? A. production budget B. sales budget C. cash received budget D. cash payments budget

Question 5: Which of the following is not an operating budget? A. sales budget B. production budget C. direct labor budget D. cash budget

Question 6: The units required in production each period are computed by which of the following methods? A. adding budgeted sales to the desired ending inventory and subtracting beginning inventory B. adding beginning inventory, budgeted sales, and desired ending inventory C. adding beginning inventory to budgeted sales and subtracting desired ending inventory D. adding budgeted sales to the beginning inventory and subtracting the desired ending inventory.

Question 7: Which is not a section of the cash budget? A. cash receipts B. cash disbursements C. allowance for uncollectible accounts D. financing needs

Question 8: Which of the following includes only financial budgets? A. capital asset budget, budgeted income statement, sales budget B. production budget, capital asset budget, budgeted balance sheet C. cash budget, budgeted balance sheet, capital asset budget D. budgeted income statement, direct material purchases budget, cash budget

Question 9: What is the main difference between static and flexible budgets? A. The fixed manufacturing overhead is adjusted for units sold in the flexible budget. B. The variable manufacturing overhead is adjusted in the static budget. C. There is no difference between the budgets. D. The variable costs are adjusted in a flexible budget.