Chapter 21 Quiz\tQuestion 1\t\u00a0\tA benefit of budgeting is that it provides definite objectives for evaluating performance.\tQuestion 2\t\u00a0\tEffective budgeting requires clearly defined lines of authority and responsibility.\tQuestion 3\t\u00a0\tFinancial budgets must be completed before the operating budgets can be prepared.\tQuestion 4\t\u00a0\tThe budgeted income statement indicates the expected profitability of operations for the next year\t\u00a0\tQuestion 5\t\u00a0\tThe budget itself and the administration of the budget are entirely accounting responsibilities\t\u00a0\tQuestion 6\t\u00a0\tWhy are budgets useful in the planning process?\tQuestion 7 \t\u00a0\tWhich of the following statements about budget acceptance in an organization is true?\tQuestion 8\t\u00a0\tThe budget committee would not normally include the\tQuestion 9\t\u00a0\tWhich of the following is not an operating budget?\tQuestion 10 \t\u00a0\tThe production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired ending finished goods units, respectively?\t\u00a0\tQuestion 11\t\u00a0\tA company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month’s budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January, 2013 in order for the company to meet its goals?\tQuestion 12\t\u00a0\tThe following information is taken from the production budget for the first quarter:\t\u00a0\tBeginning inventory in units \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 1,200\tSales budgeted for the quarter \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 456,000\tProduction capacity in units \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 472,000\t\u00a0\tHow many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?\tQuestion 13\t\u00a0\tA company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be\tQuestion 14\t\u00a0\tThe single most important output in preparing financial budgets is the\tQuestion 15\t\u00a0\tWhat is the proper preparation sequencing of the following budgets?\t\t1 – Budgeted Balance Sheet\t2 – Sales Budget\t3 – Selling and Administrative Budget\t4 – Budgeted Income Statement\tQuestion 16\t\u00a0\tThe formula for determining budgeted merchandise purchases is budgeted\tQuestion 17\t\u00a0\tOrange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities will prepare?\tQuestion 18\t\u00a0\tThe primary benefits of budgeting include all of the following except it\tQuestion 19\t\u00a0\tThe budget that is often considered to be the most important financial budget is the\tQuestion 20\t\u00a0\tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 21 Quiz Question 1 \u00a0 A benefit of budgeting is that it provides definite objectives for evaluating performance. Question 2 \u00a0 Effective budgeting requires clearly defined lines of authority and responsibility. Question 3 \u00a0 Financial budgets must be completed Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200169","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200169"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200169\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}