1. Indicate the order (1-12) in which the components of a master budget should be prepared for a manufacturing company. Order # (1- 12): budgeted balance sheet ending finished goods inventory budget manufacturing overhead budget budgeting assumptions production budget beginning balance sheet selling and administrative expense budget direct labor budget cash budget direct materials budget budgeted income statement sales budget 2. What of the following exemplifies the term "responsibility accounting? a) The production manager is held responsible for the price paid for materials. b) The purchasing manager is held responsible for the prices paid for materials but not for unfavorable materials quantity variances. c) The plant manager bypasses the ordering process to procure raw materials at a cheap price. d) The sales manager is fired for the sales department not meeting budgeted sales goals. Answer: 3. Which information would be needed to prepare a direct materials budget? a) cash collections from sales on account b) direct labor hours available c) required production in units d) budgeted sales in units