TOTAL POINTS QUESTIONS ALLOCATED CORRECT POINTS PER TOTAL Multiple Choice QUESTION 1.75 CH 8: Short Answer 38 CH 9: Short Answer 39 & 40 63 12 12 CH 10: Short Answer 3 16 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A budget is best described as: A) A formal statement of a company's future plans usually expressed in monetary terms. B) The most crucial component of a company's evaluation process. C) The minimum acceptable performance level. D) An informal statement of company's future plans usually expressed in monetary terms. 2) Budgets that are periodically revised and have new periods added to replace those that have lapsed are called: A) Sales budgets. B) Production budgets. C) Rolling budgets. D) Capital expenditures budgets. 3) Which of the following statements about budgeting is false? A) Budgeting forces managers to think ahead and formalize future objectives. B) The master budget should only be prepared by top management. C) Budgeting is an aid to planning and control. D) Budgets create standards for performance evaluation 4) Which of the following budgets are prepared before the sales budget? Budgeted Income Statement Yes Yes No No Direct Labor Budget Yes No Yes No A) B) C) D) A) Choice A B) Choice B C) Choice C D) Choice D 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? A) It summarizes the costs of producing units for the budget period. B) It details the required raw materials purchases. C) It details the required direct labor hours. D) It is calculated based on the sales budget and the desired ending inventory