1.Once the tentative estimate of sales has been agreed upon, the usual next step in the preparation of the master budget is

a. preparation of sales forecast

b. determination of finished goods quantities to be produced to meet sales and inventory requirements

c. determination of raw material quantities needed to meet production and inventory requirements

d. determination of direct labor costs

2.Wizard Consortium is constructing a corporate planning model. Cash sales are 30% of the company's sales with the remainder subject to the following collection pattern: One month after sale 60% Two months after sales 30% Three months after sales8% Uncollectible 2%

If 'Sn' is defined as total sales in month 'n,' which of the following expression correctly describes Wency's collection on account in any given month?

a. 0.42Sn+1 + 0.21Sn+2 + 0.056Sn+3

b. 0.42Sn-1 + 0.21Sn-2 + 0.056Sn-3

c. 0.6Sn+1 + 0.3 Sn+2 + 0.08 Sn+3

d.0.6Sn-1 + 0.3 Sn-2 + 0.08 Sn-3

3.Using the concept of 'expected value" in sales forecasting means that the sales forecast to be used is

a. developed using the indicator method

b. the sum of the sales expected by individual managers

c. based on expected selling prices of the products

d. based on probabilities