1)Which of the following is an operating budget?

A.tax budget

B.cash budget

C.production budget

D.capital budget

2)Which of the following is most likely to result in employee buy-in to budget?

A.basin the budget on the prior year

B.total participation approach

C.bottom-up approach

D.top-down approach

3)Which of the following is true in a bottom-up budgeting approach?

A.departments budget their needs however they see fit

B.supervisors tell departments their budget amount and the departments are free to work within those amounts

C.departments determine their needs and relate them to the overall goals

D.Every expense needs to be justified

4)Which of the operating budgets is prepared first?

A.cash payments budget

B.production budget

C.sales budget

D.cash received budget

5)Which of the following is not an operating budget?

A.production budget

B.cash budget

C.direct labor budget

D.sales budget

6)The units required in production each period are computed by which of the following methods?

A.adding beginning inventory to budgeted sales and subtracting desired ending inventory

B.adding budgeted sales to the desired ending inventory and subtracting beginning inventory

C.adding beginning inventory, budgeted sales, and desired ending inventory

D.adding budgeted sales to the beginning inventory and subtracting the desired ending inventory

7)Which is not a section of the cash budget?

A.cash disbursements

B.cash receipts

C.allowance for uncollectible accounts

D.financing needs

8)Which of the following includes only financial budgets?

A.capital asset budget, budgeted income statement, sales budget

B.budgeted income statement, direct material purchases budget, cash budget

C.production budget, capital asset budget, budgeted balance sheet

D.cash budget, budgeted balance sheet, capital asset budget

9)What is the main difference between static and flexible budgets?

A.the variable manufacturing overhead is adjusted in the static budget

B.the variable costs are adjusted in a flexible budget

C.the fixed manufacturing overhead is adjusted for units sold in the flexible budget

D.there is no difference between the budgets