Info
Warning
Danger
/ Homework Answers / Accounting / 11.The key data element which the entire budget based the:   A. sales/revenue

Question

11.The key data element on which the entire budget is based is the: 
 

A. sales/revenue forecast.

B. income statement budget.

C. cash budget.

D. balance sheet forecast.

12.The operating budget depends on key information developed in the: 
 

A. cash forecast.

B. sales forecast.

C. labor forecast.

D. operating forecast.

13.The production budget uses all of the following except: 
 

A. the sales forecast.

B. the inventory policy.

C. the cash receipts budget.

D. the beginning inventory quantity.

14.A materials purchases budget must be completed immediately after the preparation of the: 
 

A. direct labor budget.

B. operating expense budget.

C. cash budget.

D. production budget.

15.Operating expenses are best budgeted on the basis of knowledge about: 
 

A. cost behavior patterns.

B. relevant range.

C. prior period actual expenses.

D. current period budget amounts.

16.The cash budget is especially important to a firm when: 
 

A. there is not a lot of confidence in the sales forecast.

B. it has a relatively large amount of operating cash.

C. the P/E ratio has been trending downwards.

D. itmay have to negotiate a short-term bank loan.

17.Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity? 
 

A. Variable cost and fixed cost.

B. Direct cost and indirect cost.

C. Product cost and period cost.

D. Committed cost and discretionary cost.

18.Which of the following costs are included in the cost classification that is based on the time frame perspective? 
 

A. Variable cost and fixed cost.

B. Direct cost and indirect cost.

C. Product cost and period cost.

D. Committed cost and discretionary cost.

19.A cost that is incurred because of a long-range policy decision is known as a: 
 

A. discretionary cost.

B. committedcost.

C. continuous cost.

D. standard cost.

20.Which of the following is not an important factor to consider when preparing a sales forecast? 
 

A. the state of the economy.

B. seasonal demand variations.

C. a change in the management team.

D. competitors' actions.

14-1

Solution
5 (1 Ratings )

Solved
Accounting 4 Months Ago 447 Views
This Question has Been Answered!
Premium Content -