Chapter 8: Budgeting and Responsibility Accounting

Chapter 8 ACCT Question Developing goals and preparing various budgets to achieve those goals is part of responsibility accounting planning the budget period control More accurate estimates and higher motivation are generally the result of using a(n) Blank______ budget. participative continuous imposed perpetual An integrated business plan that formally lays out the company's goals is called the Blank______ budget. Multiple choice question. self-imposed sales profit planning master The first step in the budgeting process is the preparation of the _____ budget. Gathering feedback to ensure that the plan is being followed is referred to as ____ Many of the schedules in a master budget are based on a variety of management estimates and assumptions. True False Budgets Blank______. focus on what has happened in the past primarily help managers with day-to-day emergencies communicate management's plan throughout the organization Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of responsibility accounting a sales budget continuous budgeting self-imposed budgeting The annual master budget file includes the ______ from last year because it is needed for the schedule of expected cash collections. balance sheet income statement cash budget sales budget A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the ____ budget When creating an Excel budgt. & performing what-if analysis, it is generally easiest to copy the master budget and make change to the copy only adjust data inputs within each master budget sched. create the budget with a budgeting assumption tab The first step in the budgeting process is preparing the Blank______ budget. production direct materials cash sales Answer Master budget schedules ______. are based on estimates and assumptions answer several key questions for a company may be prepared in any order are based on estimates and assumptions answer several key questions for a company In a manufacturing company, the ______ budget shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory. sales cash production direct materials A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period is called a(n) ___ budget. Because it is needed for the schedule of expected cash collections, the annual master budget file includes the _____. _____ from last year Using budgeting assumptions when preparing the master budget, ______. involves adjusting data inputs within each master budget schedule makes it easier to answer "what-if" questions increases the complexity of the process In a manufacturing company, the ______. _______ budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories. ( In a manufacturing company, the _____ budget is prepared right after the sales budget. Working hours required to satisfy the production budget are shown on the ______ budget. cash direct labor direct materials merchandise purchases The amount of goods to be acquired from suppliers during the period is shown on the ______ budget. merchandise purchases sales manufacturing overhead direct labor The annual master budget file includes the Blank______ from last year because it is needed for the schedule of expected cash collections. cash budget sales Planning Participative Budget Master Budget Sales Budget Control True Communicate management's plan throughout the organization Self-imposed budgeting Balance Sheet Master Budget Create the budget with a budgeting assumption tab Sales Budget Production Merchandise Purchase Budget Balance Sheet makes it easier to answer "whatif" questions Direct Materials Budget Production Budget Direct Labor Budget Merchandise Purchases Balance Sheet budget income statement balance sheet In a manufacturing company, the ______ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories sales merchandise purchases production direct materials All costs of production other than direct materials and direct labor are shown on the _______ _______ budget The cost of unsold units is computed on the ______ budget. production manufacturing overhead ending finished goods inventory sales The number of working hours required to satisfy the production budget is shown on the _______ _______ budget In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the ______ budget. cash selling and administrative ending finished goods inventory manufacturing overhead A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period is called a(n) _____ _____budget A company can repay outstanding principal and interest when ______ the $ excess is greater than the min. requrd. cash balance the $ excess = the min. required $ balance there is a cash defic. the $ excess is less than the min. required cash balance Because it is needed for the schedule of expected cash collections, the annual master budget file includes the _____ _____ from last year Which of the following budgets shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured? Budg income statement Budget selling and administrative expenses MO budg Budg balance sheet All costs of production other than direct materials and direct labor are shown on the ______ budget. ending finished goods inventory cash manufacturing overhead merchandise purchases To prepare a budgeted balance sheet as of December 31, 2021, data is needed from the ______ December 31, 2020. balance sheet as of income statement for the year ended statement of cash flows for the year ended The ending finished goods inventory budget computes the cost of ______ units sold unsold Budgeted expenses for areas other than manufacturing are shown on the ______ budget. selling and administrative ending finished goods inventory manufacturing overhead cash A company's planned net profit that serves as a benchmark against which subsequent company performance can be measured is shown on the budgeted _____ ______ A budgeted balance sheet is developed using data from the ______ of the budget period and data contained in the various schedules. average beginning end Direct Materials Budget Manufacturing Overhead Budget Ending Finished Good Inventory Budget Direct Labor Budget Selling and Administrative Budget Merchandise Purchases Budget the cash excess is greater than the minimum required cash balance Balance Sheet Budgeted Income Statement Manufacturing Overhead Budget Balance Sheet as of Unsold Selling and Administrative Income Statement Beginning