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Which of the following factors isnotan advantage of preparing operating budgets?

Select one:

A.Improved planning

B.Improved basis of performance evaluation

C.Increased employee loyalty

D.Improved communications

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Happy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Gross sales for the quarter are projected as follows:

January	$20,000
February	$10,000
March	$40,000

Accounts receivable on December 31 were $30,000. Happy's expected cash collections for March would be:

Select one:

A.$32,000

B.$47,200

C.$30,250

D.$37,000

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Big Yellow Company manufactures wooden wagons. To manufacture a wagon, it takes 10 units of wood and 1 unit of steel. Scheduled production of wagons for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units each of the next two months, and the steel inventory is expected to increase 7 units each of the next two months. How many units of steel are expected in the raw materials inventory at the end of the second month?

Select one:

A.45 units

B.60 units

C.44 units

D.90 units

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When management directs attention only to those activities not proceeding according to plan, they are engaging in

Select one:

A.Management by exception.

B.activity-based management.

C.organization-based management.

D.just-in-time management.

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The Fred Fisher Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $26,000. How much merchandise inventory will The Fred Fisher Corporation need to purchase next month?

Select one:

A.$123,000

B.$246,000

C.$190,000

D.$400,000

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Charlie Chair Company manufactures chairs. The estimated number of chair sales for each of the last three months of Year 1 is as follows:

Month	Unit Sales
October	10,000
November	14,000
December	7,500

Finished goods inventory at the end of November was 2,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Charlie Chair expects to sell the chairs for $100 each. January sales for Year 2 are projected at 16,000 chairs. How many chairs should Charlie produce in December?

Select one:

A.7,500

B.9,500

C.14,000

D.15,000

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Budgets improve ____________________ and ____________________.

Select one:

A.communication; coordination

B.information; revenues

C.revenues; profits

D.communication; profits

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Kent Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000. For Kent Company, the ending accounts payable should be:

Select one:

A.$356,000

B.$414,000

C.$264,000

D.$341,000

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Which budgeting approach predicts a cost objective's budget by anticipating the consumption of cost drivers?

Select one:

A.The activity-based approach

B.Participation budgeting

C.The continuous budgeting approach

D.The input/output approach

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Which of the following isnotpart of risk management?

Select one:

A.Identify possible risks and their implications

B.Select a response to each risk.

C.Eliminate all risks that have been identified

D.Predict the probability and impact of each risk