Depreciation expense should always be excluded from disbursements in a cash budget a. True b. False Which of the following is not a possible purpose of an operating budget within an organization? a. Assist in planning and setting objectives b. Create better communication in the organization c. Motivate employees d. Provide a vehicle for performance measurement e. All of the above are purposes In creating a master operating budget, which budget must be prepared prior to preparing the direct materials purchase budget? a. b. c. d. e. Production budget Manufacturing overhead budget Cash budget Both a & b All of the above Use information about Doll company below to answer the next two questions. Doll has budgeted sales in units for the next 4 months. The ending finished goods inventory must equal 10% of next months budgeted sales in units. What are the total number of units to be produced in March? a. 5400 units b. 5440 units C. 5580 units d. 6120 units e. None of the above February 6800 units March 5400 units April May 7200 units 4600 units Doll sells the product at $20 apiece, 10% of those sales are cash. The remaining credit sales are collected at 40% in the month of sale, 55% in the month following, and the last 5% of credit sales are uncollectible. What is the budgeted total cash collections for April? a. $119,700 b. $66,240 c. $131,400 d. $117,000 e. $72,000