5 Written Questions
5 Matching Questions
- Sales budget
- Cash budget
- Master budget
- Production budget
- Operating budgets
- a Shows expected sales in units at their expected selling prices.
- b Shows planned production for given period.
- c Depicts effects on cash of all budgeted activities.
- d Plans for all phases of operations and include production, purchasing, personnel, and marketing budgets.
- e An organization's operating and financing plan for the upcoming period; it translates short-term objectives into action steps
5 Multiple Choice Questions
- The process of projecting continuing operations and projects and then reflecting their financial impact.
- A process for evaluating, selecting, and financing long-term projects
- The "cushion" managers intentionally build into budgets to help ensure success in meeting the budget.
- Shows the amount and budgeted cost of direct material required for production
- Provides a constant planning horizon with the use of regularly updated forecasts.
5 True/False Questions
Fixed performance contract → Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
Financial budgets → Identify sources and uses of funds for budgeted operations and capital expenditures
Direct materials purchases budget → Shows the physical amount and cost of planned purchases of direct materials.
Zero-base budgeting (ZBB) → A budgeting process that requires managers to prepare budgets from a zero base.
Gaming the performance measure → A result on non-value-adding actions taken by managers to improve indicated performance.