Question:

Answer: b

Question:

Answer: c

Question: The method of developing budget estimates that requires managers to estimate sales, production, and other operating data as though operations are being started for the first time is __________ budgeting.

1. flexible

2. b. continuous

3. c. zero-based

4. d. master

5. Answer: c

6. Question:

7. Answer: a

8. Question: *A budget that shows the expected result of the responsibility center for only one activity level is referred to as a

9. a. capital expenditures budget.

10. b. master budget.

11. c. static budget.

12. d. None of these choices are correct

13. Answer: c

14. Question: *Which of the following budgets is not part of the production budget?

15. a. Cash budget

16. b. Direct materials purchases budget

17. c. Direct labor cost budget

18. d. Factory overhead cost budget

19. Answer: a

20. Question: Which of the following is not a necessary component when developing the budgeted income statement as part of the master budget?

21. a. Selling and administrative expenses budget

22. b. Capital expenditures budget

23. c. Production budget

24. d. Factory overhead cost budget

25. Answer: b

26. Question: The sales budget might include revisions to prior year’s sales quantities for all of the following except

27. a. projected pricing changes.

28. b. productive capacity.

29. c. findings of market research studies.

30. d. unplanned advertising and promotion

31. Answer: d

32. Question:

33. Answer: d

34. Question:

35. Answer: a