Sales Budget

Question 1

Consider the following statements.

Statement A: Sales budgets are individual budgets that result in the preparation of the budgeted income statement - establish goals for sales and production personnel.
Statement B: Financial budgets are capital expenditures budget, the cash budget, and the budgeted balance sheet - focus primarily on cash needs to fund operations and capital expenditures.
.
Option 1: Statement A is true and Statement B is false
Option 2: Statement A is false and Statement B is true
Option 3: Both Statements A and B are true
Option 4: Both Statements A and B are false

Question 2

Which of the following budget is prepared by multiplying expected unit sales volume for each product times anticipated unit selling price?

Option 1: Sales Budget
Option 2: Master Budget
Option 3: Operating Budget
Option 4: Financial Budget

Question 3

Participative budgeting supports which of the following approaches?

Option 1: Bottom-to-top
Option 2: Top-to-bottom

Question 4

Which of the following budget is a set of interrelated budgets that constitutes a plan of action for a specified time period?

Option 1: Master Budget
Option 2: Participative Budget
Option 3: Sales Budget

Question 5

Every other budget depends on which of the following budget?

Option 1: Participative Budget
Option 2: Sales Budget
Option 3: Master Budget

Question 6

Which of the following budget is derived from sales budget plus the desired change in ending finished goods?

Option 1: Production Budget
Option 2: Master Budget
Option 3: Participative Budget

Question 7

Static budget reports are NOT appropriate for which of the following costs?

Option 1: Fixed costs
Option 2: Variable costs

Question 8

_________ maximize net income.

Identify the correct option to fill in the given blank.

Option 1: Profit entities
Option 2: Non -for-profit entities

Question 9

_________ are costs incurred directly by a level of responsibility that are controllable at that level.

Identify the correct option to fill in the given blank.

Option 1: Controllable costs
Option 2: Noncontrollable costs

Question 10

Consider the following statements.

Statement A: Cost Center incurs costs but does not directly generate revenues.
Statement B: Profit Center incurs costs and generates revenues.
.
Option 1: Statement A is true and Statement B is false
Option 2: Statement A is false and Statement B is true
Option 3: Both Statements A and B are true
Option 4: Both Statements A and B are false