Podcast Beta
Questions and Answers
What is the primary purpose of a budget?
What are the three types of budgets included in the Master Budget?
What is the purpose of the Cash Budget?
What is the Capital Budget?
Signup and view all the answers
What is Incremental Budgeting?
Signup and view all the answers
What is the philosophy behind Activity-Based Budgeting?
Signup and view all the answers
What is the main advantage of Zero-Based Budgeting?
Signup and view all the answers
What is the philosophy behind Value Proposition Budgeting?
Signup and view all the answers
What is the focus of Kaizen budgeting?
Signup and view all the answers
What is the main difference between simple moving average and weighted moving average methods?
Signup and view all the answers
What is the advantage of using multiple linear regression analysis over simple linear regression analysis?
Signup and view all the answers
How does Value Proposition Budgeting allocate a budget amount to each expense category?
Signup and view all the answers
What is the core principle of the Kaizen method?
Signup and view all the answers
What factors could be used to determine the incremental increase in Incremental Budgeting?
Signup and view all the answers
Who is responsible for initiating, monitoring, and finalizing the budgeting process?
Signup and view all the answers
What is the first step in Activity-Based Budgeting?
Signup and view all the answers
Which sub-budget is the first to be created?
Signup and view all the answers
What is the Budgeted Balance Sheet derived from?
Signup and view all the answers
What are some examples of investments that might be included in a Capital Budget?
Signup and view all the answers
Which forecasting model is the easiest and most commonly used?
Signup and view all the answers
When is the Budgeted Balance Sheet prepared?
Signup and view all the answers
What does the Production Budget determine?
Signup and view all the answers
What happens when a company has limited financial resources according to Value Proposition Budgeting?
Signup and view all the answers
What should the budget be based on?
Signup and view all the answers
Which of the following statements is true about a Capital Budget? (More than one answer might be correct)
Signup and view all the answers
What does the Direct Materials Budget calculate?
Signup and view all the answers
What does the Direct Labor Budget calculate?
Signup and view all the answers
When is multiple linear regression analysis used?
Signup and view all the answers
What is the purpose of a Budget Review?
Signup and view all the answers
What does the Production Overheads Budget include?
Signup and view all the answers
What is simple linear regression forecasting?
Signup and view all the answers
What does the Target Ending Inventory Budget calculate?
Signup and view all the answers
What does the Selling Expense Budget include?
Signup and view all the answers
What does the Administrative Expense Budget include?
Signup and view all the answers
Which budget is based on day-to-day business activities?
Signup and view all the answers
Study Notes
- A budget is a planning and decision-making tool for business owners and managers.
- It is also a controlling tool.
- The budget should be as exact as possible and based on reality.
- The Budget Committee makes decisions on net income, working capital, revenues, and cash outflows.
- Different scenarios can be modeled to see which is the most feasible.
- The execution phase begins after the planning phase.
- The budget plan is revisited at the end of the month, quarter, or year.
- Actual numbers are compared to target numbers.
- The budget review identifies what went over budget and what came in under budget.
- The budget review helps in making planning for the next period easier and allows different strategic decisions.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Master the art of budgeting with our insightful quiz! From planning and decision-making to controlling and executing, this quiz covers all the aspects of budgeting for business owners and managers. Test your knowledge and learn essential keywords specific to budgeting to help you succeed in your financial endeavors. Take the quiz now and gain valuable insights to make informed decisions for your business!