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HW-1234 MCQ 20 qs
A key to estimating an accurate amount of cash to be collected from sales is:
the accuracy of the sales forecast.
the accuracy of the estimated collection patterns for sales.
both A and B are keys.
neither A nor B are keys.
Which of the following lists the components of the master budget in correct chronological order?
Cash budget, budgeted income statement, budgeted balance sheet.
Budgeted balance sheet, cash budget, budgeted income statement.
Budgeted income statement, cash budget, budgeted balance sheet.
It doesn't matter in which order they are prepared.
A budget that is prepared for several periods in the future, then revised several times prior to the budget period is called a:
rolling budget.
zero-based budget.
discretionary budget.
single-period budget.
Fixed costs classified according to the time frame perspective are known as:
direct cost and indirect cost.
constant and inconsistent cost.
committed cost and discretionary cost.
product cost and period cost.
A cash budget would not include:
sale of common stock.
payment of dividends.
payment of property taxes.
plant and building depreciation.
Which of the following costs are included in the cost classification that is based on the time frame perspective?
Variable cost and fixed cost.
Direct cost and indirect cost.
Product cost and period cost.
Committed cost and discretionary cost.
the development of the operating budget is complete when:
the sales forecast for next year is complete.
the budgeted cash flow statement is complete.
the budgeted income statement is complete.
the budgeted balance sheet is complete.
A budget that has been prepared only once prior to the budget period is called a:
continuous budget.
zero-based budget.
discretionary budget.
single-period budget.
What is the "key" to the entire operating budget?
The forecast of operating activity.
The budgeted income statement.
The budgeted balance sheet.
The production/purchases budget.
Which of the following is not a strong reason for budgeting?
Budgets provide a benchmark for judging performance.
Budgeting requires little effort by non-accounting managers.
Budgeting requires management to plan.
Budgeting requires coordination among the functional areas of the firm.
The operating budget depends on key information developed in the:
cash forecast.
sales forecast.
labor forecast.
operating forecast.
A materials purchases budget must be completed immediately after the preparation of the:
direct labor budget.
operating expense budget.
cash budget.
production budget.
The production budget uses all of the following except:
the sales forecast.
the inventory policy.
the cash receipts budget.
the beginning inventory quantity.
The key data element on which the entire budget is based is the:
sales/revenue forecast.
income statement budget.
cash budget.
balance sheet forecast.
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
Variable cost and fixed cost.
Direct cost and indirect cost.
Product cost and period cost.
Committed cost and discretionary cost.
A cost that is incurred because of a long-range policy decision is known as a:
discretionary cost.
committed cost.
continuous cost.
standard cost.
The budgeting process that most likely creates an attitude supportive of achieving organization goals is:
top-down approach.
zero based approach.
proportionate increase approach.
participative approach.
An important reason for imposing a minimum cash balance in the cash budget is:
it provides a cushion that can absorb forecast errors.
it provides extra funds for managers to spend.
it makes the balance sheet look better.
all of the above.
Zero-based budgeting forces managers to:
identify and prioritize the activities that are carried out in their departments.
justify all of their expenditures for each budget period.
both A and B.
none of the above.
The cash budget is especially important to a firm when:
there is not a lot of confidence in the sales forecast.
it has a relatively large amount of operating cash.
the P/E ratio has been trending downwards.
it may have to negotiate a short-term bank loan.
Answer will be sent by email.
the accuracy of the sales forecast.
the accuracy of the estimated collection patterns for sales.
both A and B are keys.
neither A nor B are keys.
Which of the following lists the components of the master budget in correct chronological order?
Cash budget, budgeted income statement, budgeted balance sheet.
Budgeted balance sheet, cash budget, budgeted income statement.
Budgeted income statement, cash budget, budgeted balance sheet.
It doesn't matter in which order they are prepared.
A budget that is prepared for several periods in the future, then revised several times prior to the budget period is called a:
rolling budget.
zero-based budget.
discretionary budget.
single-period budget.
Fixed costs classified according to the time frame perspective are known as:
direct cost and indirect cost.
constant and inconsistent cost.
committed cost and discretionary cost.
product cost and period cost.
A cash budget would not include:
sale of common stock.
payment of dividends.
payment of property taxes.
plant and building depreciation.
Which of the following costs are included in the cost classification that is based on the time frame perspective?
Variable cost and fixed cost.
Direct cost and indirect cost.
Product cost and period cost.
Committed cost and discretionary cost.
the development of the operating budget is complete when:
the sales forecast for next year is complete.
the budgeted cash flow statement is complete.
the budgeted income statement is complete.
the budgeted balance sheet is complete.
A budget that has been prepared only once prior to the budget period is called a:
continuous budget.
zero-based budget.
discretionary budget.
single-period budget.
What is the "key" to the entire operating budget?
The forecast of operating activity.
The budgeted income statement.
The budgeted balance sheet.
The production/purchases budget.
Which of the following is not a strong reason for budgeting?
Budgets provide a benchmark for judging performance.
Budgeting requires little effort by non-accounting managers.
Budgeting requires management to plan.
Budgeting requires coordination among the functional areas of the firm.
The operating budget depends on key information developed in the:
cash forecast.
sales forecast.
labor forecast.
operating forecast.
A materials purchases budget must be completed immediately after the preparation of the:
direct labor budget.
operating expense budget.
cash budget.
production budget.
The production budget uses all of the following except:
the sales forecast.
the inventory policy.
the cash receipts budget.
the beginning inventory quantity.
The key data element on which the entire budget is based is the:
sales/revenue forecast.
income statement budget.
cash budget.
balance sheet forecast.
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
Variable cost and fixed cost.
Direct cost and indirect cost.
Product cost and period cost.
Committed cost and discretionary cost.
A cost that is incurred because of a long-range policy decision is known as a:
discretionary cost.
committed cost.
continuous cost.
standard cost.
The budgeting process that most likely creates an attitude supportive of achieving organization goals is:
top-down approach.
zero based approach.
proportionate increase approach.
participative approach.
An important reason for imposing a minimum cash balance in the cash budget is:
it provides a cushion that can absorb forecast errors.
it provides extra funds for managers to spend.
it makes the balance sheet look better.
all of the above.
Zero-based budgeting forces managers to:
identify and prioritize the activities that are carried out in their departments.
justify all of their expenditures for each budget period.
both A and B.
none of the above.
The cash budget is especially important to a firm when:
there is not a lot of confidence in the sales forecast.
it has a relatively large amount of operating cash.
the P/E ratio has been trending downwards.
it may have to negotiate a short-term bank loan.
Answer will be sent by email.
