1.

Which of the following is NOT an objective of the budgetingprocess?

A.	To communicate management's plans throughout the entireorganization.

B.	To provide a means of allocating resources to those parts of theorganization where they can be used most effectively.

C.	To ensure that the company continues to grow.

D.	To uncover potential bottlenecks before they occur.

2.

The budget method that maintains a constant twelve-monthplanning horizon by adding a new month on the end as the currentmonth is completed is called:

A.	an operating budget.

B.	a capital budget.

C.	a continuous budget.

D.	a master budget.

3.

The direct labor budget is based on:

A.	the desired ending inventory of finished goods.

B.	the beginning inventory of finished goods.

C.	the required production for the period.

D.	the required materials purchases for the period.

4.

Sioux Corporation is estimating the following sales for thefirst four months of next year:



Sales are normally collected 60% in the month of sale, 35% in themonth following the sale, and the remaining 5% being uncollectible.Based on this information, how much cash should Sioux expect tocollect during the month of April?

A.

$286,500

B.

$320,000

C.

$192,000

D.

$94,500

5.

Paradise Corporation budgets on an annual basis for its fiscalyear. The following beginning and ending inventory levels (inunits) are planned for next year.



*Three pounds of raw material are needed to produce each unit offinished product.

If Paradise Corporation plans to sell 480,000 units during nextyear, the number of units it would have to manufacture during theyear would be:

A.	440,000 units

B.	480,000 units

C.	510,000 units

D.	450,000 units

Answer rating: 100% (QA)

Qns 1 Option C To ensure that the company continues to grow Budgeting process is totally used for op... View the full answer