Question 1

The master budget

	A.	Reflects controllable costs only.
	B.	Shows forecasted and actual results.
	C.	Can be used to determine manufacturing cost variances.
	D.	Contains the operating budget.

Question 2

The cash budget is normally included in the financial budget of a firm.

True

False

Question 3

Normally, the bulk of a firms cash receipts is:

	A.	Extraneous revenue
	B.	Sales of assets
	C.	Borrowings
	D.	Collections from customers (credit sales)

Question 4

Capital budget is considered an operating budget.

True

False

Question 5

The _______________ is an example of financial budgets.

	A.	Budgeted income statement
	B.	Direct material budget
	C.	Sales budget
	D.	Budgeted balance sheet

Question 6

Like _______________, selling and administrative expenses are made up of fixed and variable components.

	A.	Direct labor
	B.	Factory overhead
	C.	Direct materials
	D.	Cost of purchase

Question 7

Jiggy company plans to sell 33,000 units during the month of May. The company plans to have 2,500 units on hand at the end of the month. If 1,200 units are on hand on May 1, how many units must be produced during May?

	A.	35,500
	B.	31,800
	C.	33,000
	D.	34,300

Question 8

Produc Production of Product 101 has been budgeted at 300,000 units for June. One unit of Product 101 requires 3 lbs. of raw material. The projected beginning and ending materials inventory for June are:

Beginning inventory: 4,000 lbs.

Ending inventory: 16,000 lbs.

How many lbs. of material should be purchased during June?

	A.	288,000
	B.	312,000
	C.	936,000
	D.	912,000

Question 9

Capital budget is considered an operating budget.

True

False