The _________ budget should always be prepared first. | Homework.Study.com (2024)

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• The budget that is developed first when preparing the master budget is the _____ budget.
• Have you used a budget in your personal life? How?
• Of the three components of operating budget, which budget is prepared first?
• Which of the following budgets would be prepared immediately after the preparation of the overhead budget? a. cash budget b. production budget c. cost of goods sold budget d. cost of goods manufactured budget
• A budget prepared for one expected level of activity is called a ________. A. rolling budget B. flexible budget C. variable budget D. static budget
• The starting point in preparing a master budget is the preparation of the a. production budget. b. sales budget. c. purchasing budget. d. personnel budget.
• A budget prepared for one expected level of activity is called a ____. A) flexible budget B) static budget C) variable budget D) rolling budget
• The budget that needs to be completed first when preparing the master budget is the: a). Production Budget. b). Sales Budget. c). Cash Budget. d). Capital Expenditures Budget.
• Budgets are prepared for income, and various cash expenses and expenditures. May a budget be prepared for a balance sheet and why?
• Which of the following steps in the preparation of a master budget would logically be performed first? a) Prepare a budget of manufacturing costs. b) Prepare a sales forecast. c) Prepare a cash budget. d) Prepare a production schedule.
• Operating budgets and financial budgets a. combined form the master budget b. are prepared before the master budget c. are prepared after the master budget d. have nothing to do with the master budget
• What is the purpose of budgeting? Should all businesses have a budget?
• Which of the following budgets is prepared before the preparation of the production budget? a. Sales budget b. Cash budget c. Direct labor budget d. Capital expenditure budget
• Which of the following budgets should be prepared before the others listed below? a. Cost of goods manufactured budget. b. Cash budget. c. Production budget. d. Overhead budget.
• Of the budgets listed below, which is usually prepared last? a. production budget b. cash budget c. sales budget d. overhead budget
• The budgeting process would normally begin with the preparation of a: a. capital expenditure budget b. production budget c. cash budget d. none of these e. sales budget
• The first step in preparing the master budget is the __________. A) cash budget B) capital budget C) operating expense budget D) sales budget
• In general, the first budget prepared is the: 1)production budget. 2)direct labor budget. 3) sales budget. 4) overhead budget. 5) capital expenditures budget
• The budgeting process would normally begin with the preparation of a: A. cash budget. B. capital expenditure budget. C. sales budget. D. production budget. E. None of these.
• The budget prepared for different levels of activity is called a ____. A) rolling budget B) operating budget C) flexible budget D) static budget
• Is the manufacturing overhead budget prepared before the sales budget? Explain.
• Which budget is prepared first? A. Main budget B. Sales budget C. Static budget D. Capital expenditures budget
• A budget prepared at a single volume of activity is referred to as a ____. a. strategic budget b. standard budget c. static budget d. flexible budget
• A budget prepared at a single volume of activity is referred to as a _______. (a) strategic budget (b) static budget (c) standard budget (d) flexible budget.
• Which of the following budgets are prepared before the sales budget? Manufacturing Overhead Budget | Cash Budget A) Yes | Yes B) Yes | No C) No | Yes D) No | No
• A budget that is prepared for several periods in the future and then revised several times prior to the budget period is known as a: A. main budget. B. rolling budget. C. static budget. D. capital expenditures budget.
• A budget adjusted to reflect a budget allowance based on actual activity achieved rather than the planned level of activity in the original budget is a: a. static budget b. rolling budget c. controllable budget d. flexible budget
• 1. A budget prepared at a single volume of activity is referred to as a: A. Strategic budget. B. Standard budget. C. Static budget. D. Flexible budget. 2. The following static budget is provided:
• A flexible budget is: a. prepared based on different levels of activity. b. prepared based on one level of activity. c. prepared on a monthly basis only. d. also known as activity-based budget. e. less accurate than a static budget.
• The first step in the budgeting process is the preparation of the ______. a. production budget b. selling and administrative expenses budget c. sales forecast d. cash budget
• A budget prepared for different levels of activity is called a A) rolling budget B) operating budget C) flexible budget D) static budget
• Which of the following budgets is not used in the preparation of a budgeted income statement? A. Master budget B. Selling and administrative budget C. Sales budget D. Manufacturing overhead budget
• Which element of a master budget would normally be prepared first? a. A production budget. b. A cash budget. c. A budget of operating expenses. d. A sales forecast.
• Which of the following budgets is NOT used in the preparation of a budgeted income statement? a. Master budget b. Sales budget c. Selling and administrative budget d. Manufacturing overhead budget
• Which of the following budgets are prepared before the production budget? Direct Materials BudgetSales Budget AYesYes BYesNo CNoYes DNoNo a. Option A b. Option B c. Option C d. Option D
• The fixed-variable cost classification has a special significance in the preparation of ________. A. Capital budget B. Cash budget C. Master budget D. Flexible budget
• The basic difference between a master budget and a flexible budget is that a master budget is: a. Based on one specific level of production, and a flexible budget can be prepared for any production level within a relevant range. b. Only used before and du
• When is a static budget used?
• When is a flexible budget used?
• (a) What is a static planning budget? (b) What is a flexible budget? (c) How does a flexible budget differ from a static planning budget?
• A static budget is based on the ____ level of output and the flexible budget is based on the ____ level of output. A) actual; expected B) expected; actual C) expected; planned D) actual; projected
• The static budget is based on the ____ level of output and the flexible budget is based on the ____ level of output. A) actual; expected B) expected; actual C) expected; planned D) actual; projected
• A flexible budget is appropriate for a: Marketing budget Direct material usage budget a. No No b. No Yes c. Yes Yes d. Yes No
• Which of the following budgets is prepared at the end of the budget-construction cycle? a. Sales budget b. Production budget c. Budgeted financial statements d. Cash budget e. Overhead budget
• Prepare the flexible budget for Cutler Ridge based on the information provided above. Calculate the flexible budget variances and the planning variances for each cost item as well as the total variance. Indicate whether the variances are favorable or unfa
• What is the sequence of steps used in preparing the master budget? a. output from operating budgets is used to prepare the financial budgets b. output from financial budgets is used to prepare the operating budgets. c. operating and financial budgets a
• What is the sequence of steps used in preparing the master budget? a. output from operating budgets is used to prepare the financial budgets b. output from financial budgets is used to prepare operating budgets. c. operating and financial budgets are p
• Which comes first: the production budget or the materials purchases budget?
• Drawing upon personal experience from when you completed a budget, share your experiences and your role in preparing the budget.
• Which of the following budgets are prepared before the production budget? Direct Materials Budget Sales Budget A) YesYes B) Yes No C) No Yes D) No No
• One type of flexible budget is when we prepare a budget for our actual activity level for the period that is already over. Is there another type of flexible budget? If so, what does it look like?
• Zero-based budgeting requires that managers start budgeting at point zero and: a. budget only for changes from the past period's budget. b. justify every dollar that will appear in the budget. c. budget only for major items of expense. d. All of the other
• Which budgets are generally more expensive to maintain than single-period budgets because more time and effort is required in their preparation? a. zero-based b. continuous c. discretionary d. production
• Matthew is concerned about his ability to save money regularly and has prepared a budget. Which of the following budget classifications would be most appropriate for Matthew's budget? A. Savings as a fixed expenditure B. Saving whatever may be left over C
• The master budget process usually ends with: -The production budget. -The sales budget. -The budgeted balance sheet. -The overhead budget. -The selling expense budget
• The strategy whereby a company uses the current period's budget as a starting point in preparing the next period's budget is referred to as: A) mandated budgeting. B) zero-based budgeting. C) incremental budgeting. D) participative budgeting.
• A budget that is based on the actual activity of a period is known as a a. static budget. b. master budget. c. flexible budget. d. continuous budget.
• What assumptions go into preparing a budget for a New York Fashion Week show? In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New
• A combined set of operational budgets and a set of financial budgets for the entire organization is known as: a. master budget b. flexible budget c. month-to-month budget d. constant budget
• A spending variance is made up of _____.
• A rolling budget is a budget that: a. extends 5-10 years into the future. b. continuously updated, so that the next 12 months of operations are always budgeted. c. begins with zero for each expense, and then amounts are added in. d. is rolled out by u
• What are the costing and budgeting formulas that are often used?
• A budget that is often changed at the end of a reporting period is called a: a. balanced budget. b. cost budget. c. flexible budget. d. trial balance budget.
• A budget that is often changed at the end of a reporting period is called a. a balanced budget. b. a cost budget. c. a flexible budget. d. a trial balance budget.
• Per GASB standards, a budget-to-actual comparison must include columns for the actual and A. the original budget only. B. the final budget only. C. both the original and the final budget. D. both the amended and the final budget.
• Building in budgetary slack includes: a. overestimating budgeted revenues. b. underestimating budgeted costs. c. making budgeted targets more easily achievable. d. none of the above.
• Rolling budgets help management to a. better review the past calendar year b. deal with a 5-year time frame c. focus on the upcoming budget period d. rigidly administer the budget
• Discuss the difference between budget and standard cost.
• Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows As to the initial budget The budget anticipated 30,000 inpatient days this
• A budget that can be easily adjusted to show budgeted revenues, costs, and cash flows at different levels of activity is known as: A. A flexible budget. B. A master budget. C. A production budget. D. A multi-level budget.
• A budget that is established at the beginning of the period and not adjusted for different levels of actual sales activity is called a: A. flexible budget. B. zero-based budget. C. static budget. D. nonfinancial budget.
• Prepare a budget report based on flexible budget data to help Joe. As a sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria
• Development of the operating budget begins with the: a. Cash budget. b. Sales budget. c. Overhead budget. d. Pro forma budget.
• __________ are components of a master budget. A. A strategic plan and an operating budget B. An operating budget and a capital budget C. A continuous budget and a static budget D. A cash budget and an activity budget
• In preparing a flexible budget, we use: a. expected costs at the actual level of activity. b. expected costs at the estimated level of activity. c. actual costs at the actual activity. d. actual costs at the budgeted activity.
• The budget summarizing future plans for acquiring plant facilities and equipment is called the: A. main budget. B. flexible budget. C. static budget. D. capital expenditures budget.
• Identify the choice that best completes the statement or answers the question: 11. Which of the following budgets is a financial budget? a. Sales budget b. Cash budget c. Overhead budget d. Cost of goods manufactured budget
• A flexible budget: a. is, in essence, a series of static budgets at different levels of activity. b. can be prepared for each of the types of budgets included in a master budget. c. increases budget allowances both directly and proportionately for variabl
• A) What are standard costs? Is a standard different from a budget? B) What happens if they are set too high or too low?
• A flexible budget may be prepared: a. before the operating period only b. after the operating period only c. during the operating period only d. at any time in the planning period e. only when th
• Prepare a budgetary control statement for Britas Limited on a flexible budget basis for the month of October 2012. b. Explain the difference between a "fixed" budget and a 'flexible' budget and why Britas might have decided to choose a system of flexible
• Which of the following would depict the logical order for preparing (1) a production budget, (2) a cash budget, (3) a sales budget, and (4) a direct-labor budget? A. 1-3-4-2 B. 2-3-1-4 C. 2-1-3-4 D. 3-1-4-2 E. 3-1-2-4
• Starlight companys static budget is based on a planned activity level of 58,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one b
• A flexible budget is a budget that _______. (a) is updated with actual costs as they occur during the period (b) is updated to reflect the actual level of activity during the period (c) is prepared using a computer spreadsheet application (d) contains onl
• Identify the choice that best completes the statement or answers the question: 19. Which of the following is prepared directly after the cash budget? a. Overhead budget b. Production budget c. Budgeted balance sheet d. Capital expenditures budget
• Fixed costs _____.
• The following extract is taken from the overhead budget of X: Budgeted activity50%75% Budgeted overhead $100,000 $112,500 The overhead budget for an activity level of 80% would be: A. $115,000 B. $120,000 C. $136,000 D. $160,000
• What is cost allocation?
• Some individuals assume that a flexible budget means the organization just changes the budget whenever something happens that was not budgeted. Nothing could be further from the truth. Explain the concept of a flexible budget, why it is used, and what va
• "Budgetary Slack" occurs when: a. the budget is so difficult to meet that employees slack-off from work. b. an authoritative, or imposed, budgeting process issued. c. employees ask for resources in excess of what they need to "meet" budget objectives.
• An operating budget would not include a: a. cash budget b. sales budget c. labor budget d. production budget e. operating expense budget
• The operating expense budget is based on the: A. sales budget B. production budget C. manufacturing overhead budget D. cash budget E. none of the above
• List the operating budgets in order of completion.
• The primary difference between a static budget and a flexible budget is that: a. the static budget contains only fixed costs, while the flexible budget contains only variable costs. b. the static budget is prepared for a single level of activity, while a
• A budget that includes a 12-month planning period at all times is called a __________ budget. a. pro forma b. flexible c. master d. continuous
• A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output is the definition of a: a. continuous budget. b. flexible budget. c. master budget. d. period budget.
• Determine the term being defined by the following statement: A budget prepared based on predicted amounts of revenues and expenses corresponding to the actual level of output. Choose from the following words: | Fixed budget | Standard costs | Price vari
• Which of the following budgets is a financial budget? a. sales budget b. cash budget c. direct labor budget d. marginal expenditure budget