Production Budget:

a.

b.

c.

4. Direct Materials:

a.

b.

c.

5. Direct Labor:

a.

b.

c.

6. Manufacturing Overhead: _____________________________________

__________________________________________________________

7. Selling and Administrative Expense: _____________________________

__________________________________________________________

8. Budgeted Income Statement:

a.

b.

9. Cash Budget: _________________________________________

a. Why is cash budget often considered to be the most important financial budget?

b. The cash budget contains three sections:

(1)

(2)

(3)

c. Companies obtain data for preparing the cash budget from _______ _______________________________________________________

d. A cash budget shows managers ________________________ _______________________________________________________

10. Budgeted Balance Sheet: ________________________________________

__________________________________________________________

H. Budgeting in Nonmanufacturing Companies.

1. Nonmanufacturing such as:

a.

b.

c.

2. The major differences between the master budgets of a merchandiser and a manufacturer are:

a.

b.

3. In service enterprises, such as an accounting firm, a law office, or a medical practice, the critical factor in budgeting is coordinating professional staff needs with anticipated services.

a. If a firm is overstaffed, several problems may result:

(1)

(2)

(3)

b. If a service enterprise is understaffed:

(1)

(2)

4. Budgeting is just as important for not-for-profit organizations as for profit-oriented enterprises.

a.

b.