Question 7

Which of the following is not one of the elements in the Master Budget of a manufacturing company?

A.The Capital Expenditures Budget.

B.The Financial Budget.

C.The Manufacturing Overhead Budget.

D.The Contribution Margin Budget.

E.The Operating Expenses Budget.

8)Huron, Inc. is a manufacturing firm and is finalizing its master budget for the upcoming year. Upon review, you notice that there is something incorrect with how they have formatted the budget. Based on what your textbook for ACCT 2550 would indicate, which of the following best represents an error on Huron's master budget?

A.Huron's financial budget portion includes a budget for capital expenditures.

B.Huron has included a budgeted income statement as part of its master budget.

C.Huron included cash collections as part of its combined cash budget.

D.Huron's production budget is being used to drive the direct materials, direct labour, and manufacturing overhead budgets.

E.Huron's operating budget includes a budgeted balance sheet.

9)When you examine Huron's combined cash budget, you also notice something incorrect. Which of the following facts would you flag for the company's accountant to follow-up on?

A.The company has added the beginning cash balance from January to the expected cash collections for the month to calculate the total cash available.

B.Huron uses the beginning cash balance from the previous month to determine the ending cash balance for the following month.

C.The company has indicated that seems to already know the months in which it will need to borrow cash from the bank.

D.Huron calculates its interest expense by multiplying the amount of the loan by the number of months they had the loan, and then by the monthly interest rate.

E.Huron's combined cash budget includes both cash collections and cash disbursements portions.