1. A planning calendar in budgeting is the

1. Schedule of activities for the development and adoption of the budget.
2. Calendar period covered by the annual budget and the long-range plan.
3. Calendar period covered by the budget.
4. Sales forecast by months in the annual budget period.
5. Schedule of dates at which economic goals are to be met (cma)

2. For the company that does not have resource limitation, in what sequence would following budgets be prepared?

1. cash budget
2. sales budget
3. inventory budget
4. production budget
5. purchases budget

a. sequence ii, iii, iv, v and i. c. sequence ii, iv, iii, v, and i.

b. sequence ii, iii, iv, I and v. d. sequence iv, iii, ii, I, and v. (rpcpa)

3. Budgets that are prepared for various degrees of plant operations and are used to control costs at different levels of productive capacity is: (rpcpa)

a. Operating budgets. c. Rolling budgets.

b. Flexible budgets. d. Out-of-pocket costs.

4. Feedback, feedforward, and preventive are important types of control systems and procedures for accounting information system. Which of the following is in the correct order of feedback, feedforward, and preventive control system? (cma)

1. Cost accounting variances, separation of duties, and cash planning.
2. Cash budgeting, capital budgeting, and hiring qualified employees.
3. Inventory control, capital budgeting, and cash budgeting.
4. Cost accounting variances, cash budgeting, and organizational independence.

5. Which one of the following sequences for performance reports can best be used in the management control process as a communications tool?
   1. Plan approval, feedforward, feedback, corrective action
   2. Feedforward, plan approval, feedback corrective action
   3. Plan approval, feedforward, corrective action, feedback
   4. Feedforward, plan approval, corrective action, feedback

6. Which one of the following is not considered to be a benefit of participative budgeting?

1. The budget estimates are prepared by those in direct contact with various activities.
2. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization.
3. Managers are held responsible for reaching their goals, and they cannot shift their responsibility by blaming the unrealistic goals demanded by the budget.
4. When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. (cma)

7. Budgetary slack can best be described as (cma)

1. The planned overestimation of budgeted expenses.
2. A plug number used to achieve a preset level of operating income.
3. The elimination of certain expenses to enhance budgeted income.
4. The planned underestimation of budgeted expenses. Answer the following and Explain the answer