1. Consider the following statements: 1. Budgets are used to plan and control operations. II. An...

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1. Consider the following statements: 1. Budgets are used to plan and control operations. II. An advantage of self-imposed budgeting is that it may allow lower-level managers to create budgetary slack. a. I is true; Il is true is true, Il is false c. 1 is false; It is true d. 1 is false; Il is false 2. Consider the following statements: 1. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory. II. When preparing a direct materials budget, the units of raw materials needed to meet production should be added to the desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased. is true; Il is true- b. I is true; Il is false c. 1 is false; It is true d. I is false; Il is false 3. Which of the following budgets are prepared after the Sales budget? Production budget Yes Yes No No Purchases budget Yes No Yes No 4. When preparing a production budget, the required production equals: a. Budgeted Sales +Beginning Inventory b. Budgeted Sales Budgeted Sales d. Budgeted Sales Beginning Inventory Beginning Inventory Beginning Inventory Desired Ending Inventory Desired Ending inventory +Desired Ending Inventory Desired Ending Inventory 5. Seventy (70%) percent of Parlee Company's sales are collected in the month of sale. 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January Total sales $800,000 February $700,000 March April $600,000 $500,000 Total budgeted cash collections in April would be: 70% *500,000 $600,000 c. $480,000 +20% d. $420,000 e. None of the above. The answer is + 10% #926 serves $540,000 1. Consider the following statements: 1. Budgets are used to plan and control operations. II. An advantage of self-imposed budgeting is that it may allow lower-level managers to create budgetary slack. a. I is true; Il is true is true, Il is false c. 1 is false; It is true d. 1 is false; Il is false 2. Consider the following statements: 1. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory. II. When preparing a direct materials budget, the units of raw materials needed to meet production should be added to the desired ending inventory and the beginning inventory for raw materials should be subtracted to determine the amount of raw materials to be purchased. is true; Il is true- b. I is true; Il is false c. 1 is false; It is true d. I is false; Il is false 3. Which of the following budgets are prepared after the Sales budget? Production budget Yes Yes No No Purchases budget Yes No Yes No 4. When preparing a production budget, the required production equals: a. Budgeted Sales +Beginning Inventory b. Budgeted Sales Budgeted Sales d. Budgeted Sales Beginning Inventory Beginning Inventory Beginning Inventory Desired Ending Inventory Desired Ending inventory +Desired Ending Inventory Desired Ending Inventory 5. Seventy (70%) percent of Parlee Company's sales are collected in the month of sale. 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January Total sales $800,000 February $700,000 March April $600,000 $500,000 Total budgeted cash collections in April would be: 70% *500,000 $600,000 c. $480,000 +20% d. $420,000 e. None of the above. The answer is + 10% #926 serves $540,000