Podcast
Questions and Answers
What is the first phase in the master budgeting process?
What is the first phase in the master budgeting process?
Which type of budget is primarily concerned with the revenue and expenses of the organization?
Which type of budget is primarily concerned with the revenue and expenses of the organization?
In the context of budget preparation, what factors can limit an organization’s resources?
In the context of budget preparation, what factors can limit an organization’s resources?
Why is it important for budgets to be expressed quantitatively?
Why is it important for budgets to be expressed quantitatively?
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Which of the following statements about the master budget is true?
Which of the following statements about the master budget is true?
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What is the purpose of the budgeted statement of cash flows?
What is the purpose of the budgeted statement of cash flows?
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How do financial budgets relate to the master budget?
How do financial budgets relate to the master budget?
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Which component is NOT part of the operating budget?
Which component is NOT part of the operating budget?
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What is the primary purpose of the Budget Committee?
What is the primary purpose of the Budget Committee?
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Which of the following roles is likely NOT part of the Budget Committee?
Which of the following roles is likely NOT part of the Budget Committee?
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What does a budget planning calendar include?
What does a budget planning calendar include?
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Why is ownership of organizational goals essential for top executives?
Why is ownership of organizational goals essential for top executives?
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What could be a result of failing to provide distribution instructions for budget schedules?
What could be a result of failing to provide distribution instructions for budget schedules?
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What is essential for fostering trust and openness within the Budget Committee?
What is essential for fostering trust and openness within the Budget Committee?
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What role does the CEO play in relation to the Budget Committee?
What role does the CEO play in relation to the Budget Committee?
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What percentage of purchases is paid in the quarter they are made?
What percentage of purchases is paid in the quarter they are made?
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Which statement best describes the function of a budget manual?
Which statement best describes the function of a budget manual?
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How much is the budgeted payment for merchandise suppliers in Q1 of 2020?
How much is the budgeted payment for merchandise suppliers in Q1 of 2020?
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What is the standard direct labor cost per finished unit?
What is the standard direct labor cost per finished unit?
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What portion of fixed overhead is classified as non-cash?
What portion of fixed overhead is classified as non-cash?
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How many direct labor hours are required to complete one finished unit?
How many direct labor hours are required to complete one finished unit?
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What is the total budgeted payments to merchandise suppliers across all quarters?
What is the total budgeted payments to merchandise suppliers across all quarters?
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Which calculation correctly represents the payment made for the purchases in Q1 of 2020?
Which calculation correctly represents the payment made for the purchases in Q1 of 2020?
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What is the standard variable overhead rate per direct labor hour?
What is the standard variable overhead rate per direct labor hour?
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What is the total amount of other revenues received in Quarter 3?
What is the total amount of other revenues received in Quarter 3?
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What is the total budgeted cash receipts for the entire year?
What is the total budgeted cash receipts for the entire year?
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How is the budgeted direct materials purchases calculated?
How is the budgeted direct materials purchases calculated?
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How much is accrued income at the end of Quarter 4?
How much is accrued income at the end of Quarter 4?
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What is the total amount of dividends to be paid in July?
What is the total amount of dividends to be paid in July?
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What does the budgeted direct labor cost depend on?
What does the budgeted direct labor cost depend on?
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Which of the following statements about fixed overhead budgeting is true?
Which of the following statements about fixed overhead budgeting is true?
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What is the amount of the minimum cash balance required?
What is the amount of the minimum cash balance required?
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What amount is expected to be received from the sale of old non-current assets in Quarter 3?
What amount is expected to be received from the sale of old non-current assets in Quarter 3?
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What impacts the variable overhead costs in the budget?
What impacts the variable overhead costs in the budget?
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Which component is NOT part of the budgeted direct materials used calculation?
Which component is NOT part of the budgeted direct materials used calculation?
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What is the rate of interest on the credit line for cash deficits?
What is the rate of interest on the credit line for cash deficits?
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To determine the number of production personnel needed, which factor is considered?
To determine the number of production personnel needed, which factor is considered?
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What is the amount of deferred income at the end of Quarter 2?
What is the amount of deferred income at the end of Quarter 2?
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What is the typical assumption about labor in a labor-intensive operation?
What is the typical assumption about labor in a labor-intensive operation?
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What is the relationship between standard variable costs and production levels?
What is the relationship between standard variable costs and production levels?
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What is the total cash balance before financing?
What is the total cash balance before financing?
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How much must be borrowed to meet the cash need?
How much must be borrowed to meet the cash need?
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What is the excess cash balance at the end of the second quarter?
What is the excess cash balance at the end of the second quarter?
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What is the minimum cash balance required?
What is the minimum cash balance required?
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If the ending cash balance is P 426,869, how much can be used to pay off borrowings?
If the ending cash balance is P 426,869, how much can be used to pay off borrowings?
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Study Notes
Short-Term Budgeting
- Budgeting is a financial plan outlining resources needed to meet financial goals and quantitatively express organizational objectives and associated costs.
- Budgetary control is the use of budgets to manage a firm's activities.
- The master budget (or budget plan), is a comprehensive summary of a company's future plans and goals, outlining sales, production, costs, income, and cash flows for the coming year.
- Budgeting has communication, motivation, and standard-setting functions. It helps clearly articulate organizational goals and motivate personnel while setting a benchmark for performance evaluations.
Budget Definition
- A budget is a financial plan for resource allocation to achieve specified financial goals.
- A budget expresses the desired outcomes and their associated costs.
Intended Learning Outcomes
- Students will be able to define budgeting and related terms.
- Students will understand the uses and composition of budgeting processes, including budget committees.
- Students will be able to differentiate among different types of budgets and prepare a master budget, including operating and financial budgets.
- Students will relate budgeting to management functions like planning, controlling, and standards-setting.
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Description
This quiz explores the fundamentals of short-term budgeting, including definitions, types of budgets, and their functions within an organization. Students will learn about budgetary control, the master budget, and the importance of effective budgeting in achieving financial goals.
