1.

Which of the following is true with regard to budgetary planning?

Select one:

a. The human behavior aspects of budgeting, while they should not be ignored, are generally of little real significance

b. Generally accepted accounting principles require the budgets be prepared at least annually.

c. The likelihood of a realistic budget is greater when the budget is developed from top management down to lower management

d. The cash budget is often considered to be the most important output in preparing financial budgets

2.

Which of the following expenses would not appear on a selling and administrative expense budget?

Select one:

a. Indirect labor

b. Depreciation

c. Sales commissions

d. Property taxes

3.

The starting point in preparing a master budget is the preparation of the

Select one:

a. Production budget

b. Selling and administrative costs budget

c. Sales budget

d. Cash budget

4.

Which one of the following is typically not needed in preparing a sales budget?

Select one:

a. Past history of sales for individual products

b. An estimate of the number of sales staff necessary to achieve target sales

c. An understanding of the seasonality of sales

d. An estimate of total industry sales and respective market share of a particular company

5.

Which one of the following is not needed in preparing a production budget?

Select one:

a. Ending finished goods units

b. Estimated raw materials per unit

c. Beginning finished goods units

d. Budgeted unit sales