A budget prepared for a single level of volume based on management\'s best estim
ID: 2543413 • Letter: A
Question
A budget prepared for a single level of volume based on management's best estimate of the level of productiom and sales for the coming period is a: a. Flexible budget. b. Static budget c. Continuous budget d. Capital budget. 25. The budget that is used as a basis for preparing all other budgets is the: a. cash budget. b. production c. budget balance sheet. d. sales budget. budget 26. Managers should consider all of the follow ing in developing a sales budget except a. Customer demand. c. Present and future economic conditions d. Cost of materials. Kola Company sells Kerry Kola in two sizes: 12 ounce and 32 ounce bottles, at a price of $1.00 and $2.25, respectively. Projected unit sale volumes by region follow: 27. Kerry East Region: 12 ounce bottles 32 ounce bottles 200, 000 150,000 West Region: 12 ounce bottles 32 ounce bottles 325,000 250,000 What is Kerry Kola's budgeted sales? a. $1,643,750 b. $1.425,000 c. $1,362,500 d. $1,581,250 finished goods inventory on January 1 and the company's desired inventory at the end of the year is 12,000 units. Tacy's sales budget in units is: a. 147,000 b. 150,000 c. 153,000 d. 177,000 28. Tacy Tires has budgeted production of 150,000 units this fiscal year. There were 15,000 units on hand in 29. The format of the direct materials budget is similar to that of the: a. Factory overhead budget b. Sales budget c. Production budget d. Direct labor budget. 30,000 blankets. The anticipated wool inventory at January 1 is 40,000 yards, but the company desires to reduce the inventory to 20,000 yards by the end of the year. Each yard of wool costs $10. How many yards of wool should Comfy purchase? a. 190,000 yards b. 130,000 yards c. 170,000 yards d. 1,300,000 yards 30. Comfy Inc. uses five yards of wool in each blanket it produces. Comfy's production budget next year isExplanation / Answer
Dear student, only one question is allowed at a time. I am answering the first question
A static budget is based on a fixed volume of production and is the best estimate of the management’s expectations for the upcoming period
Flexible budget and continuous budget incorporate changing quantities in the budget estimate and are not based on fixed quantities
Capital budget is the budget of expenses allocated for fixed assets which an organization is going to do in the coming period
So, as per above discussion, option b is the correct option
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