Question : 147.              The primary benefits of budgeting include all of the : 1311839

 

 

147.              The primary benefits of budgeting include all of the following except it

a.requires only top management to plan ahead and formalize their future goals.

b.provides definite objectives for evaluating performance.

c.creates an early warning system for potential problems.

d.motivates personnel throughout the organization.

 

 

148.              The responsibility for expressing management’s budgeting goals in financial terms is performed by the

a.accounting department.

b.top management.

c.lower level of management.

d.budget committee.

 

 

149.              Coordinating the preparation of the budget is the responsibility of the

a.treasurer.

b.president.

c.chief accountant.

d.budget committee.

 

 

150.              For better management acceptance, the flow of input data for budgeting should begin with the

a.accounting department.

b.top management.

c.lower levels of management.

d.budget committee.

 

 

151.              In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to

a.desired ending direct materials.

b.beginning direct materials.

c.desired ending direct materials less beginning direct materials.

d.beginning direct materials less desired ending direct materials.

 

 

152.              Grey Company has 24,000 units in beginning finished goods. If sales are expected to be 120,000 units for the year and Grey desires ending finished goods of 30,000 units, how many units must the company produce?

a.114,000

b.120,000

c.126,000

d.150,000

 

 

153.              The important end-product of the operating budgets is the

a.budgeted income statement.

b.cash budget.

c.production budget.

d.budgeted balance sheet.

 

 

154.              On January 1, Kale Company has a beginning cash balance of $42,000. During the year, the company expects cash disbursements of $340,000 and cash receipts of $290,000. If Kale requires an ending cash balance of $40,000, the company must borrow

a.$32,000.

b.$40,000.

c.$48,000.

d.$92,000.

 

 

155.              The budget that is often considered to be the most important financial budget is the

a.cash budget.

b.capital expenditure budget.

c.budgeted income statement.

d.budgeted balance sheet.

 

 

156.              Lark Corp.’s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are

a.$330,000.

b.$320,000.

c.$300,000.

d.$260,000.

 

 

157.              A purchases budget is used instead of a production budget by

a.merchandising companies.

b.service enterprises.

c.not-for-profit organizations.

d.manufacturing companies.

 

 

158.              Which of the following statements is incorrect?

a.A continuous twelve-month budget results from dropping the month just ended and adding a future month.

b.The production budget is derived from the direct materials and direct labor budgets.

c.The cash budget shows anticipated cash flows.

d.In the budget process for not-for-profit organizations, the emphasis is on cash flow rather than on revenue and expenses.