41 when creating the sales budget management simply takes the sales from the year be 4308017

41 when creating the sales budget management simply takes the sales from the year be 4308017

41) When creating the sales budget, management simply takes the sales from the year before and divides that total by 12 months. Thus, each month will always predict the same amount of budgeted sales.

42) The first component of the operating budget is the production budget.

43) The four components of the operating budget are the sales budget; inventory, purchases and cost of goods sold budget; and the cash budget.

44) The sales budget must be prepared after every other component of the operating budget.

45) Budgeting includes planning for ending inventory.

46) The sales budget is the cornerstone of the master budget.

47) On the production budget, the number of units to be produced is computed as

A) unit sales + desired end inventory + beginning inventory.

B) unit sales + desired end inventory – beginning inventory.

C) unit sales – desired end inventory – beginning inventory.

D) unit sales – desired end inventory + beginning inventory.

48) On the direct labor budget, the total quantity of direct labor hours needed is computed as

A) units to be produced × direct labor hour per unit.

B) quantity needed for production + indirect labor hours – direct labor hours.

C) units to be produced – indirect labor hours × cost per labor hour.

D) estimated direct labor hours needed × cost per hour.

49) On the direct materials budget, the total quantity of direct materials needed is computed as

A) quantity needed for production + desired end inventory of DM – beginning inventory of DM.

B) units to be produced + desired end inventory of DM – beginning inventory of DM.

C) units to be produced – desired end inventory of DM + beginning inventory of DM.

D) quantity needed for production – desired end inventory of DM + beginning inventory DM.

50) The ________ budget is the only budget stated only in units, not dollars.

A) production

B) sales

C) direct materials

D) manufacturing overhead

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts