Podcast
Questions and Answers
What is a disadvantage of a static budget?
What is a disadvantage of a static budget?
- It does not adjust for changes in activity levels (correct)
- It adjusts for changes in activity levels
- It integrates operating and financial budgets
- It shows expected results for several activity levels
Which budget estimates the quantities of direct materials to be purchased to support budgeted production and desired inventory levels?
Which budget estimates the quantities of direct materials to be purchased to support budgeted production and desired inventory levels?
- Factory overhead cost budget
- Direct materials purchases budget (correct)
- Sales budget
- Direct labour cost budget
What does the production budget estimate?
What does the production budget estimate?
- Quantities of direct materials to be purchased
- Direct labor hours needed to support budgeted production
- Number of units to be manufactured to meet budgeted sales and desired inventory levels (correct)
- Cost for each item of factory overhead
Which budget integrates the following budgets: Direct material purchases, Direct labour cost, and Factory overhead cost?
Which budget integrates the following budgets: Direct material purchases, Direct labour cost, and Factory overhead cost?
What is the purpose of a cash budget?
What is the purpose of a cash budget?
In multiperiod budgeting, what does the Budget Production formula represent?
In multiperiod budgeting, what does the Budget Production formula represent?
What is the main difference between zero-based budgeting and incremental budgeting?
What is the main difference between zero-based budgeting and incremental budgeting?
What is the purpose of participating budgeting in organizations?
What is the purpose of participating budgeting in organizations?
In what situation does goal conflict arise in the budgeting process?
In what situation does goal conflict arise in the budgeting process?
What is the role of a responsibility center in an organization?
What is the role of a responsibility center in an organization?
Why might setting too loose budget goals be detrimental to a company?
Why might setting too loose budget goals be detrimental to a company?
