ny with the practice of comparing a companies is called A) differentiation analysis benchmarking th 1) budget 17) The starting point in developing the master budget is the preparation of the A) budgeted income statement o les budget D) production budget 18) Which of the following describes the production budget A) It helps in planning to ensure the business has adequate cach B) It aids in planning to ensure the company has adequate inventory and cash and It depicts the breakdown of sales on the basis of terms and conditions of collection of revenue. D) It provides the quantity of finished goods to be produced during a budget period 19) Beridze Manufacturing expects to produce 2000 units in January and Moo units in February Beridze budgets $20 per unit for direct materials. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,650. Beridze desires the ending balance in Raw Materials inventory to be 10% of the next month's direct materials needed for production. Desired ending balance for February is $1,100. What is the cost of budgeted purchases of direct materials needed for January? A) $58,000 B) $26,550 $65,200 D) $25,150 20) 20) When preparing the operating budgets for a manufacturing company, the manufacturing overhead budget A) includes costs that are projected by the cost accountant and the production manager B) only computes the budgeted overhead cost for the year represents the last period cost to be considered D) only includes variable manufacturing overhead 21) Which of the following describes the selling and administrative expenses budget?! A) It aids in planning to ensure the company has adequate inventory on hand. B) It shows the cash flows related to the selling and administrative expenses and helps in planning to ensure the business has adequate cash. C) It captures the variable and fixed components of selling and administrative expenses of the business. D) It depicts the breakdown of sales based on terms of collection. 22) Which of the following would not appear on the selling and administrative budget of Odell Company? A) Salaries Expense B) Depreciation Expense Rent Expense D) Indirect Labor