Which of the following statements regarding budgets is false?a. They are formal documents that quantify a company"s plans.b. They enhance communication and coordination. c. They are useful in planning but not in control.d. They provide a basis for evaluating performance.

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Which of the following statements regarding a sales budget is false? a. Input from the sales force may be useful in predicting sales.b. Very large companies may hire economists to help forecast sales.c. The sales budget is prepared before the cash receipts and disbursements budget.d. The sales budget is developed after the production budget.
Which of the following is the correct formula to determine required purchases of direct materials? a. Quantity required for production + Desired ending quantity - Beginning quantity.b. Quantity required for production - Desired ending quantity + Beginning quantity.c. Quantity required for production + Desired ending quantity + Beginning quantity.d. Beginning quantity + Purchases - Desired ending quantity.
Which of the following items do not require a cash outflow? a. Salaries.b. Purchase of raw materials.c. Advertising.d. Depreciation.
Beecher Inc. is planning to purchase inventory for resale costing $90,000 in October,$70,000 in November, and $40,000 in December. The company pays for 40% of its purchases in the month of purchase and 60% in the month following purchase. What would be the budgeted cash disbursements for purchases of inventory in December? a. $40,000b. $70,000c. $58,000d. $200,000
The term planning involves:a. the development of future objectives and the preparation of various budgets to achieve these objectives. b. the steps taken to ensure that objectives set down by management are attained. c. the steps taken to ensure that all parts of the organization function in a manner consistent with organizational policies. d. comparing budgeted and actual results and taking steps to remedy unacceptable variations.
A major advantage of budgeting is that it: a. eliminates many of the uncertainties associated with the business environment. b. ensures that management"s objectives will be met. c. requires managers to give planning top priority among their duties. d. eliminates the need for management to engage in control activities.

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Which of the following represents the correct order in which the budget documents for a manufacturing company would be prepared? a. Sales budget, cash budget, direct materials budget, direct labor budget b. production budget, sales budget, direct materials budget, direct labor budget c. Sales budget, cash budget, production budget, direct materials budget d. Selling and administrative expense budget, cash budget, budgeted income statement, budgeted balance sheet
Bargas Framing"s cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to: A. $7,088B. $7,090C. $7,106D. $7,100
Brayboy Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,260 square feet and the actual level of activity was 1,200 square feet. The company"s owner budgets for supply costs, a variable cost, at $3.90 per square foot. The actual supply cost last month was $4,300. What would have been the spending variance for supply costs last month? A. $380 FB. $1,004 FC. $198 FD. $234 F
AActual $4,300 compared to Flexible Budget $4,680 ($3.90 X 1,200 sq ft)Because the actual expense is less than the flexible budget, the variance is favorable (F).
a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period

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