1. Which of the following statements is correct concerning the Cash Budget?

Multiple Choice

• The Cash Budget never includes cash disbursements from selling and administrative expenses, it only includes disbursements from product costs.

• The Cash Budget must be prepared before any other budgets.

• The Cash Budget does not contain any depreciation expenses.

• The ending cash balance is calculated by adding cash collected to the beginning cash balance for the period.

2. Hiss Corporation's activity for the last six months is as follows:

	Machine Hours			Electrical Cost
July	2,000			$	1,560
August	3,000			$	2,280
September	2,400			$	1,750
October	1,900			$	1,520
November	1,800			$	1,450
December	2,100			$	1,600

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $280

• $260

• $210

• $235

3. The starting point for the Direct Labor Budget is:

Multiple Choice

• the materials to be purchased from the direct materials budget.

• the units to be sold from the sales budget.

• the ending inventory from the budgeted balance sheet.

• the units to be produced from the production budget.