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    Sales Budget

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    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

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    Solution Preview

    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.
    .
    Instead of Sales Budget it should be operating budget , Hence option 2

    Option 2: Statement A is false and Statement B is true

    Question 2

    Which of the following budget is prepared by multiplying ...

    Solution Summary

    The response discusses sales budgets and other budgets. The focus which is primarily cash fund operated is determined.

    $2.19