1.Which of the following statements best describes the relationship between the sales forecasting process and the master budgeting process?

1. The sales forecast typically completed after completion of the master budget
2. The sales forecast typically completed approx. halfway through the master-budget process
3. The sales forecast typically completed before the master budget and has no impact on the master budget
4. The sales forecast typically completed before the master budget and has little impact on the master budget
5. The sales forecast typically completed before the master budget and has significant impact on the master budget

2.Maki plans to sell 10k units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Make purchase for the quarter ended September 30?

1. 31,850
2. 32,150
3. 32,950
4. 33,250
5. None of the answers is correct

3.A static budget:

1. Is based totally on prior years costs
2. Is based on one anticipated activity level
3. Is based on a range of activity
4. Is preferred over flexible budget in the evaluation of performance
5. Presents a clear measure of performance when planned activity differs from actual activity

4.A flexible budget for 15k hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 25k hours would reveal total overhead cost of:

1. $210k
2. $270k
3. $290k
4. $350k
5. None of the answers is correct

5.A manufacturer develops budgets for the direct materials, direct labor and overhead that will be required in the production process from which of the following?

1. The selling and admin expenses budget
2. The budget for merchandise purchases
3. The sales budget
4. The production budget
5. The cash budget

6.Which of the following should have the strongest cuase and effect relationship with overhead costs:

1. Cost followers
2. Non-value added costs
3. Cost driver
4. Value added costs
5. Units of output