1//Why do some managers play budgeting games such as budgetary slack?Budgetary slack occurs when managers intentionally understate expected revenues or overstate expected expenses. This increases the chance that actual performance will be better than the budget and that they will receive a favorable performance evaluation. A.True B. False Question 2//Which of the following is a long-term financial plan used to coordinate the activities needed to achieve long-term company goals? A. Continuous budget B.Operational budget C.Strategic budget Question 3//Which of the following is a budget prepared for various levels of sales volume? A. Continuous budget B.Operational budget C. Strategic budget D. Flexible budget Question 4//Explain the difference between strategic and operational budgets. A. A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company. B. An operational budget is a short-term financial plan used to coordinate the activities needed to achieve the short-term goals of the company. C. Operational budgets are most often one year in length, but may also span only a week, a month, or a quarter, depending on the company's needs. D. All the above Question 5//The master budget process usually begins with the A. Sales budget B. Production budget C. Static budget D. Flexible budget Question 6//What is the formula used to determine the number of units to be produced? A. Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Plus: Units in beginning inventory Budgeted units to be produced B. Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced C. Budgeted units to be sold Less: Desired units in ending inventory Total units needed Plus: Units in beginning inventory Budgeted units to be produced Question 7//What is the formula used to determine the quantity of direct materials to be purchased? A. Budgeted units to be produced Direct materials per unit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per unit Budgeted cost of direct materials purchases B. Budgeted units to be produced * Direct materials per unit Direct materials needed for production Less: Desired direct materials in ending inventory Total direct materials needed Plus: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per unit Budgeted cost of direct materials purchases Question 8//What are the two types of manufacturing overhead? A. Flexible and static overhead B. Variable and fixed overhead C. Direct material and direct labor Question 9//What is the capital expenditures budget? A. The capital expenditures budget presents the company's plans for purchasing property, plant, equipment, and other long-term assets. B. The capital expenditures budget is one of the three budgets included in the master budget. C. The capital expenditures budget is part of a strategic plan used to coordinate activities needed to achieve the long-term goals of the company D. All the above Question 10// Green Co.'s sales are collected as follows: 30% in the month of sales, 50% in the next month, and 20% in the following month. November sales were $52,500, and December sales were $84,000. If total sales for January are budgeted to be $50,000, what are the expected cash receipts for January? A.$67,500 B.$55,950 C.$51,450 Question 11 // What are the three sections of the cash budget? A.Cash receipts, cash payments, and short-term financing B.Cash receipts, borrowing and interest expense C. Beginning cash, cash receipts, cash payments Question 12//Which of the following would not be used in preparing a cash budget for October? A. Direct material purchases B. Direct labor costs C. Interest expense D. Depreciation expense Question 12// What budgets are included in the financial budget for a manufacturing company? A.Cash receipts schedule, cash payment schedule, Cash budget B.Sales Budget, Cost of Goods Sold budget, Cash budget C. Cash budget, Budgeted Income Statement, Budgeted Balance Sheet Question 13//In preparing a budgeted balance sheet, the amount for Accounts Receivable is primarily determined by which of the following budgets? A.Budgeted income statement B.Cash budget C.Cash receipts schedule D. Cash payments schedule Question 14//In preparing a budgeted balance sheet, the amount for Accounts Payable is primarily determined from which of the following budgets? A.Budgeted income statement B.Cash budget C.Cash receipts schedule D. Cash payments schedule