Flashcards in Chapter 21 Deck (56):
The comprehensive budget plan linking all the individual budgets related to sales, COGS, operating expenses, projects, capital expenditures, and $.
A method of budgeting that provides for maintain a 12 month projection in to the futura.
A concept of budgeting that requires all levels of management to start from zero and estimate budget data as if there had been no previous activities in their units.
An accounting device used to plan and control resources of operational departments and divisions.
A budget that uses the production budget as a starting point for planning materials requirements.
DIRECT MATERIALS PURCHASES BUDGET
The budget summarizing future plans for acquiring plant facilities and equipment.
CAPITAL EXPENDITURES BUDGET
A budget of estimated unit production.
A budget of estimated direct materials, direct labor, and factory overhead consumed by sold products.
A budget that does not adjust to changes in activity levels.
A budget that adjusts for varying rates of activity.
A budget of estimated cash receipts and payments.
An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.
Excess resources set within a budget to provide for uncertain events.
A budget that uses a production budget as a starting point for planning direct labor requirements.
DIRECT LABOR COST BUDGET
The document that charts a course of future action for a business by outlining the plans of the business in financial terms is the ______.
Establishing specific goals for future operations is part of the _____ function of management.
The budgetary units of an organization are called _____ _____.
Comparing actual results to the plan to help prevent unplanned expenditures is part of the ______ function of management.
A budget that establishes lower goals than may be possible is said to contain budgetary _____.
When individual objectives are opposed to those that are in the best interests of the business the situation can be described as a(n) _____ ______.
The length of time for which the operational budget normally is prepared is a(n)
The budget process is started by preparing a sales budget. For each product the sales budget normally indicates the:
_____ _____ _____ and _____ _____ _____ ____.
QUANTITY OF ESTIMATED SALES
EXPECTED UNIT SELLING PRICE
The following data are available from the production budget of O'Connor Inc. for Product X:
Expected units of sales.........................................615,000
Estimated units in beginning inventory............ 73,500
Total units to be produced..................................705,500
The desired units in ending inventory are ______.
(Beg. Inv) + (to be Produced) - (Units sold)
The ______ budget is the starting point for determining the estimated quantities of direct material to be purchased.
The budgets that are used by managers to plan financing, investing, and cash objectives are the _____ ____ _____.
BALANCE SHEET BUDGET
The _____ budget presents the expected receipt (inflow) and payment (outflow) of cash for a period of time.
The ______ _______ budget summarizes plans for acquiring fixed assets.
The Company production budget for X is 300,000 units. X is mfg'd in 2 departments. DL in Dept. 1 is 0.2 hour per unit at an hourly pay rate of $17. Dept. 2 DL requirements for X are 0.8 hour per unit at an hourly pay rate of $20.
Total hours required for production of X are _______.
Total DL cost is _______.
Executing actionas to meet the goals of the business is the _________ function of management.
Giving information to employees abut their performance relative to the goals they helped establish is called _________.
The budget becomes less effective as a tool for planning or controlling operations if employees view budget goals as unachievable. This occurs when the budget is set too _____.
the manager of the transportation dept. was directed to stay within the dept. budget. To accomplish this goal, the manager stopped shipping to customers for an entire month. This manager's behavior is said to exhibit ______ ________.
A variation of fiscal-year budgeting that seeks to maintain a 12-month projection into the future is called ______ ______.
______ budgeting requires to estimate sales, production, and other operating data as though operations are being started for the first time.
ABC MOTORS established its budget at only one level of activity. This type of budget is called a(n) _________ ________.
LOL Construction Co. prepares its budgets based on 8,000, 9,000, and 10,000 units of productions. This type of budget is known as _______
_______ budgeting systems speed up and reduce the cost of preparing budgets.
The Budget process begins by estimating ______.
The production budgets are used to prepare the direct materials purchases, direct labor cost, and _____ ____ _____ budgets.
FACTORY OVERHEAD COST
The direct materials purchases , direct labor cost, and factory overhead cost budgets are used to develop the ____ ___ ____ ____ budget.
Two major budgets comprising the budgeted balance sheet are the cash budget and the _____ ______ budget
THE starting point often used in estimating the quantity of sales for each product in the sales budget is ___ ___ ___.
PAST SALES VOLUME
The number of units to be manufactured to meet budgeted sales and inventory needs is set forth in the ______budget.
The ____ ____ _____ budget is prepared based on the production budget and the estimated labor requirements for each unit of product.
Direct Labor Cost
The ____ ____ _____ allows management to assess the effect of the individual budgets on profits for the year.
BUDGETED INCOME STATEMENTS
YOLO CO. uses a flexible budgeting system to plan for its mfg operations. The static budget for 9,000 units of production provides for direct labor at $5 per unit and variable electric at $0.60 per unit. Fixed costs are electric power, $1,000, and supervisors salaries of $17,5000.
VARIABLE costs for 10,000 units of prod. are _____.
FIXED costs for 10,000 units of production are _____.
A zero-based budget is actually a series of budgets for varying rates of activity.
A budgeting method which provides for maintenance of a 12-month projection into the future is called continuous budgeting.
Computers are seldom used in the budget process, although computers can reduce the cost of budget prep.
The # of units of each commodity expected to be manufactured to meet budgeted sales and inventory reqs. is set forth in the prod. budget.
A schedule of collections from sales is useful for developing a cash budget.
The amount of the expenditures for fixed assets such as machinery and equipment usually remains fairly constant from year to year.
Min. cash bal. are maintained to serve as a safety buffer for variations in estimates and for unexpected emergencies.
The budgeted balance sheet brings together the projection of all profit-making phases of operations.
The first budget usually prepped is the cash budget.