Name: Date: 1 Why are budgets useful in the planning process? A) They enable the budget committee to earn their paycheck B) They provide management with information about the companys past performance C) They help communicate goals and provide a basis for e if it meets its objectives 2. An overly optimistic sales budget may result in A) insufficient inventories. B) excessive inventories. C) increases in selling prices late in the year. D) increased sales during the year. 3. The production budget shows expected unit sales of 32,000. Beginning finished goods units are 5,600. Required production units are 33,600. What are the desired ending finished A) B) 6,400 C) 4,000 D) 5,600 units? 4. Razmataz Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: S 3,000 0.60 1.20 0.30 Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other 20,000 4,000 14,000 0.35 Expenses are paid in the month incurred. If the company has budgcted to sell 4,00 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October? A) S9,800 B) $50,800 C) $8,400 D) $9,200