1. Budgets are statements of management’s plans stated in financial terms.
2. A benefit of budgeting is that it provides definite objectives for evaluating performance.
WRITE THIS ESSAY FOR ME
Tell us about your assignment and we will find the best writer for your paper.
Get Help Now!3. A budget can be a means of communicating a company’s objectives to external parties.
4. A budget can be used as a basis for evaluating performance.
5. A well-developed budget can operate and enforce itself.
6. The budget itself and the administration of the budget are the responsibility of the accounting department.
7. Effective budgeting requires clearly defined lines of authority and responsibility.
8. The flow of input data for budgeting should be from the highest levels of responsibility to the lowest.
9. Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.
10. A budget can facilitate the coordination of activities among the segments of a large company.
11. The longer the budget period, the more reliable the estimates of future outcomes.
12. The budget committee has the responsibility for coordinating the preparation of the budget.
13. The budget is developed within the framework of a sales forecast.
14. Budgeting and long-range planning are two terms that describe the same process.
15. Long-range plans are used more as a review of progress toward long-term goals rather than an evaluation of specific results to be achieved.
16. The master budget reflects management’s long-term plans encompassing five years or more.
17. The master budget consists of operating and financial budgets.
18. Financial budgets must be completed before the operating budgets can be prepared.
19. The direct materials budget must be completed before the production budget because the quantity of materials available for production must be known.
20. The number of direct labor hours needed for production is obtained from the production budget.
21. A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.
22. The manufacturing overhead budget generally has separate sections for variable, mixed, and fixed costs.
23. A production budget should be prepared before the sales budget.
24. The direct materials budget contains both quantity and cost data.
25. The budgeted income statement indicates the expected profitability of operations for the next year.
26. If a monthly cash budget is prepared properly, there will never be a cash deficiency at the end of any month.
27. The budgeted balance sheet is prepared entirely from the budgets for the current year.
28. The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.
29. A merchandiser has a merchandise purchases budget rather than a production budget.
30. A critical factor in budgeting for a service firm is to determine the amount of products to purchase.
31. The budget itself and the administration of the budget are entirely accounting responsibilities.
32. Financial planning models and statistical and mathematical techniques may be used in forecasting sales.
33. The direct materials budget is derived from the direct materials units required for production plus desired ending direct materials units less beginning direct materials units.
34. The manufacturing overhead budget shows the expected manufacturing overhead costs.
35. In order to develop a budgeted balance sheet, the previous year’s balance sheet is needed.
36. In service enterprises, the critical factor in budgeting is coordinating materials and equipment with anticipated services.
Introducing our Online Essay Writing Services Agency, where you can confidently place orders for a wide range of academic assignments. Our reputable homework writing company specializes in crafting essays, term papers, research papers, capstone projects, movie reviews, presentations, annotated bibliographies, reaction papers, research proposals, discussions, and various other assignments. Rest assured, our content is guaranteed to be 100% original, as every piece is meticulously written from scratch. Say goodbye to concerns about plagiarism and trust us to deliver authentic and high-quality work.
WRITE MY ESSAY NOW
