Date: Name: Why are budgets useful in the planning procesa? AThey enable the budget committee to earn their paycheck B) They provide 1. manngement with information abour the company's past performance. p communicate goals and provide a basis for evaluation. 2. An overly optimistic sales budget may result in: A) insufficient inventories. B) excessive inventories C) increases in selling prices late in the year. D) increased sales during the year 3. The production budget shows expected unit sales of 32,000. Beginning finished goods units are 5,600. Required production units are 33,600. What are the desired ending finished goods units? A) 7,200 B) 6,400 C) 4,000 D) 5,600 4. Razmataz Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Sales commissions $0.60 1.20 0.30 S 3,000 Shipping Advertising Executive salaries Depreciation on office equipment Other Expenses are paid in the month incurred. If the company has budgeted to sell 4,000 umbrellas in October, how much is the total budgeted variable selling and administrative 20,000 4000 14,000 0.35 expenses for October? A) $9,800 B) $50,800 C) $8,400 D) $9,200