1. Which of the following is a difference between planning and control? a. Planning is a one-time process, whereas control is a continuous process. b. Planning is management's discretion, whereas control is mandated by law. c. Planning is looking ahead, whereas control is looking backward. d. Planning is a continuous process, whereas control is a one-time process. 2. Which of the following is part of the planning cycle? b. Monitoring of actual activity c. Investigation 3. Which of the following is true of operating budgets? a. Operating budgets detail cash inflows and outflows. b. Operating budgets describe the income-generating activities of a firm. c. Operating budgets detail the investing activities of a firm. d. Operating budgets are prepared after the preparation of the financial budget. a. Production budget b. Overhead budget c. Sales budget d. Direct labor budget 2. Direct materials purchases budget: a. tells the amount and cost of raw materials to be acquired in each time period. b. tells the amount of direct materials that should be used in production under ideal conditions. c. tells the amount and cost of raw materials to be purchased and sold in each time period. d. tells the amount of direct material and labor to be used in each time period 3. Which of the following formulas is used for calculating purchases? a. Purchases - Direct materials in beginning inventory -Direct materials in ending inventory b. Purchases - Direct materials needed for production c. Purchases - Direct materials in desired ending inventory - Direct materials in beginning inventory - Direct materials needed for production Is needed for production+ Direct materials in desired ending inventory - Direct materials in beginning inventory 1. Which of the following budgets shows the expected cost of all production costs other than direct materials and direct labor? a. Production budget b. Overhead budget c. Cash budget d. Direct labor budget 2. Which of the following is true of the selling and administrative expenses budget? a. It outlines planned expenditures for nonmanufacturing activities. b. It outlines planned expenditures for manufacturing as well as nonmanufacturing activities. c. It is the basis for all of the other operating budgets and financial budgets. d. It is the basis for all of the other operating budgets and most of the financial budgets 3. The budgeted income statement helps managers: a. determine the amounts to be spent on nonproduction categories. b. determine the expected cost of producing one unit of finished goods. c. determine how much to borrow during the budgeted period. d. determine how profitable the coming year will be