1. To begin the operational budgeting process, the first budget to complete is the: Select one: a. Production budget b. Direct materials budget c. Selling and administrative budget d. Sales budget

2.

The sales budget has two primary parts. Part 1 projects total revenue and Part 2 projects cash collections. For which one of the following businesses would Part 1 and Part 2 be exactly the same?

Select one:

a. A business that only allows customers to pay by credit card at the time of sale

b. A business that allows customers to partially pay at the time of service and pay the rest over 60 days

c. A business that requires all customers to prepay for services at least 60 days in advance

d. A business that allows monthly payment plans for all customers who have bad credit

3.

Which one of the following equations is used in the production budget?

Select one:

a. Current period sales (in units) + Beginning inventory (in units) + Ending Inventory (Units)

b. Current period sales (in units) + Beginning inventory (in units) - Ending Inventory (Units)

c. Current period sales (in units) - Beginning inventory (in units) - Ending Inventory (Units)

d. Current period sales (in units) - Beginning inventory (in units) + Ending Inventory (Units)

4.

The budget or schedule that provides necessary input data for the direct labor budget is the:

Select one:

a. Raw materials budget

b. Production budget

c. Cash Receipts budget

d. Capital budget

5.

There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget?

Select one:

a. It details the required direct labor hours

b. It details the required raw materials purchases

c. It is calculated based on the sales budget and the desired ending finished goods inventory

d. It summarizes the costs of producing units for the budget period