1.

The following is true of the operational budget, except for:

Select one:

a. It has a short-term focus, usually one-year

b. It sets a plan for the purchase of assets

c. It is concerned with the cash effect of sales and expenses

d. It contains a production budget

2.

To begin the operational budgeting process, the first budget to complete is the:

Select one:

a. Production budget

b. Direct materials budget

c. Selling and administrative budget

d. Sales budget

3.

The sales budget has two primary parts. Part 1 projects total sales on a monthly basis and Part 2 calculates the month in which the sales will be received in cash. For which one of the following businesses would Part 1 and Part 2 be exactly the same?

Select one:

a. A business that only allows customers to pay by credit card at the time of sale

b. A business that allows customers to partially pay at the time of service and pay the rest over 60 days

c. A business that requires all customers to prepay for services at least 60 days in advance

d. A business that allows monthly payment plans for all customers who have bad credit

4.

Which one of the following is the equations is used in the production budget?

Select one:

a. Current period sale (in units) + Beginning inventory (in units) + Ending Inventory (Units)

b. Current period sale (in units) + Beginning inventory (in units) - Ending Inventory (Units)

c. Current period sale (in units) - Beginning inventory (in units) - Ending Inventory (Units)

d. Current period sale (in units) - Beginning inventory (in units) + Ending Inventory (Units)

5.

The budget or schedule that provides necessary input data for the direct labor budget is the:

Select one:

a. Raw materials budget

b. Production budget

c. Cash Receipts budget

d. Capital budget