21) A plan that reports the units of merchandise to be produced by a manufacturi

Question

21) A plan that reports the units of merchandise to be produced by a manufacturing 21 company during the budget period is called a ) Capital expenditures budget B) Cash budget C) Production budget D) Manufacturing budget 22) A hardware store has budgeted sales of $36,000 for its power tool department in July. 22) Management wants to have $7.000 in power tool inventory at the end of July. Its beginning inventory of power tools is expected to be $6,000. What is the budgeted dollar amount of merchandise purchases? A) $37,000 B) S42.000 C) S35,000 D) $36,000 23) A plan that shows the expected cash inflows and cash outflows during the budget 23) period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called A) A rolling budget. B) A cash budget C) A balance sheet D) An operating budget 24) A company predicts its production and sales will be 24.000 units. At that level of 24) activity, its fixed costs are budgeted at $300.000, and its variable costs are budgeted at $246.000. If its activity level declines to 20,000 units, what will be its fixed costs and its variable costs? A) Fixed. $300,000; variable, $246,000 B) Fixed, $250,000: variable, $205,000 C) Fixed, $300.000: variable, $205,000 D) Fixed, $250,000: variable, $246,000

Explanation / Answer

Answer:

21) A production budget is a plan in which a merchandise estimate the number of unit to be manufactured so the answer is option C i.e. Production Budget.

22) Sales + Closing Inventory - Opening Inventory is Purchase Amount.

So 36000+7000-6000= $37000 The answer is A $ 37000

23) Cash Budget is a Plan that shows the expected cash inflow and outflow including Loan to be raised , to be maintain and repayment so answer is option B Cash budget

24) Fixed cost is the cost which remain fixed irrespective of change in quantity produced on the other hand variable cost varies with change in poduction. So Here fixed cost is 300000$ which will remain same but with the decrease in production , variable cost become (246000/24000) * 20000 = 205000. So the answer is C Fixed cost 300000$ and Variable Cost 205000$.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.