13. The cost of goods manufactured budget is an operating budget. a. True b. Fal
ID: 2457173 • Letter: 1
Question
13. The cost of goods manufactured budget is an operating budget.
a. True
b. False
14. A sales forecast for a retail organization is based on purchases and cost of goods sold budgets.
a. True
b. False
15. It is necessary to know the budgeted number of unit sales to prepare production budget.
a. True
b. False
16. Each period's ending cash balance becomes the beginning cash balance for the next period.
a. True
b. False
17. Receipt of stock dividends, depreciation, and amortization expense will not be recorded in the cash budget prepared by an organization.
a. True
b. False
18. Once cash receipts and cash payments have been established, the cash increase or decrease is added to the period's beginning balance to arrive at a projected cash balance at period end.
a. True
b. False
19. A continuous budget is a 12-month forward-rolling budget that summarizes budgets for the next 12 months.
a. True
b. False
20. Zero-based budgeting requires the preparation of budget from scratch.
a. True
b. False
21. The budget committee oversees each stage in the preparation of a master budget.
a. True
b. False
22. Only the lowest levels of management can be evaluated using budgets.
a. True
b. False
23. Budgets identify potential constraints before they become problems.
a. True
b. False
24. Responsibility accounting authorizes managers to take control of and be held accountable for the revenues and expenses in their budgets.
a. True
b. False
25. Static budgets are prepared on quarterly basis and require frequent change during the annual budget period.
a. True
b. False
Explanation / Answer
Answers:
13: False
14: False
15: True
16: True
17: True
18: True
19: True
20: True
21: True
22: False
23: True
24: True
25: False
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