2. In which order are the following developed? First to last:A = Production budget B = Direct materials costs budgetC = Budgeted income statement D = Revenues budgeta. ABDCb. DABCc. DCABd. CABD

1. The time coverage of a budget should be: a. one year b. guided by the purpose of the budget c. cover design through the manufacture and sale of the product d. shorter rather than longer 2. In which order are the following developed? First to last: A = Production budget B = Direct materials costs budget C = Budgeted income statement D = Revenues budget a. ABDC b. DABC c. DCAB d. CABD 3. Budgeted production depends on: a. the direct materials usage budget and direct material purchases budget b. the direct manufacturing labor budget c. budgeted sales and expected changes in inventory levels d. the manufacturing overhead costs budget 2 4. Building in budgetary slack includes: a. overestimating budgeted revenues b. underestimating budgeted costs c. making budgeted targets more easily achievable d. All of the above are correct. 5. A regional manager of a restaurant chain in charge of finding additional locations for expansion is MOST likely responsible for a(n): a. revenue center b. investment center c. cost center d. profit center 6. A manager of a profit center is responsible for all of the following EXCEPT: a. sales revenue b. the cost of merchandise purchased for resale c. expanding into new geographic areas d. selling and marketing costs 7. PRIMARY consideration in assigning a cost to a responsibility center is: a. whether the cost is fixed or variable b. whether the cost is direct or indirect c. who can best explain the change in that cost d. where in the organizational structure the cost was incurred 3 8. ABC Company expects to manufacture and sell 30,000 baskets in 20X9 for $6 each. There are 3,000 baskets, in the beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 20X9 budgeted income statement? a. $174,000 b. $180,000 c. $186,000 d. $204,000 9. DeArmond Corporation has budgeted sales of 18,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 900 units. How many units should be produced next year? a. 21,900 units b. 20,100 units c. 15,900 units d. 18,000 units

All of the following are operating budgets except:Multiple choice question.production budgetsales budgetmerchandising budgetselling expenses budget

Which of the following is the correct sequence for preparing the components in an operating budget? a. Develop budgeted cost of goods sold before the fixed overhead budget. b. Develop the production budget prior to the manufacturing overhead budget. c. Develop the production budget before making sales forecast. d. Develop variable overhead budget before the sales forecast. e. Develop cash receipt budget before preparing the manufacturing overhead budget.

Which of the following budgets shows the company's planned profit?Multiple choice question.Budgeted balance sheetBudgeted selling and administrative expensesBudgeted income statementManufacturing overhead budget

A manufacturing company would typically prepare all of the following budgets except:Multiple choice question.Cash budgetFactory overhead budgetProduction budgetMerchandise inventory budget