-budgeted income statement direct materials budget production budget sales budget

-sales budget production budget direct materials budget budgeted income statement

Who would typically be responsible for the direct material quantity variance?

-the production manager

-the chief financial officer

-the purchasing manager

-the human resources manager

Which of the following is not a component of the operating budget?

-sales budget

-selling and administrative budget

-Budgeted balance sheet

-raw materials purchases budget

Top-down budgeting is:

-when the local managers impose a budget on the top management

-when customers impose a budget on top management of the company.

-when top management sets the budget and imposes it on lower levels of the organization

-when top management imposes a budget on the board of directors.

The number of units included in the production budget:

-are always the same as the number of units in the sales budget.

-depends on the raw materials purchases budget.

-is based on the number of units in the sales budget, and increased for increases in the selling and administrative expense budget to account for increased demand.

-may differ from the number of units in the sales budget, depending on ending inventory goals.