CH. 22 Quiz

Employees view budgeting more positively when goals are established for them by senior management.

Budgets are prepared in the Accounting Department and monitored by various department managers.

In preparing flexible budgets, the first step is to identify the fixed and variable components of the various costs and expenses being budgeted.

The first budget to be prepared is usually the sales budget.

The cash budget summarizes future plans for acquisition of fixed assets.

Th budget process involves doing all the following except:

The budgeting process does not involve which of the following activities:

A series of budgets for varying rates of activity is termed a:

Budgeted production for product XXX during the month is:

Bright Corporation began its operations on September 1st of the current year. Budgeted sales for the first three months of business are 250,000, 320,000, and 410,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of sale, 30% in the month following the sale. The cash collections in October are: