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Production budget, operating expenses, standards, operating expense budget

1. The production budget uses all of the following except:
a. the beginning inventory quantity.
b. the inventory policy.
c. the sales forecast.
d. the cash receipts budget.

2. Operating expenses are best budgeted on the basis of knowledge about:
a. relevant range.
b. cost behavior patterns.
c. current period budget amounts.
d. prior period actual expenses.

3. Standards are likely to be most useful when expressed in:
a. total costs for the accounting period for the department being evaluated.
b. quantities per unit of output from the process being evaluated.
c. dollars per unit of input to the manufacturing process.
d. terms easily related to by the individual whose performance is being evaluated.

4. Which of the following items would be included in the operating expense budget?
a. Raw material purchases.
b. Cash receipts.
c. Sales commissions.
d. Cost of goods sold.

Solution Preview

1. The production budget uses all of the following except:

d. the cash receipts budget.
(This is related to cash budget)

2. ...

Solution Summary

The following posting helps with multiple choice questions regarding production budget, operating expenses, standards and budgets.