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37 Cards in this Set
- Front
- Back
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The budget director assembles the final departmental into the |
master budget |
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What budget is the key to the overall company budget? |
Sales budget |
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Sales estimates normally are based upon past performance and on what forecast for the upcoming period? |
business conditions |
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What budget permits computations of costs for any attained volume of production? |
Flexible budget |
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What manufacturing cost element is budgeted as an amount per unit of product or other activity? |
Variable |
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Of the three manufacturing cost elements, what is usually the most difficult to budget? |
Manufacturing overhead |
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What budget is prepared from the budgets for materials, direct labor and manufacturing overhead? |
Costs of goods manufactured |
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What budget is sometimes called the operating budget? |
Master budget |
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What report compares actual costs with the flexible budget allowance for a month? |
Performance |
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The concept of pointing out the things that are not according to plan is part of the general philosophy of management by what? |
Exception |
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In the control phase of the budgetary control system, actual results can be compared with budgetary goals. |
True |
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The budgetary control system covers only the production phases of a firm's activities. |
False |
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Planning involves identifying objectives and determining the steps for achieving those objectives. |
True |
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Sales and administrative costs are ignored in budget preparation. |
False |
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In the production budget, the beginning finished goods inventory amount is deducted from the total budgeted requirements amounts |
True |
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A level production schedule requires a larger investment in plant and equipment than does a fluctuating production schedule. |
False |
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Manufacturing costs are budgeted only for one production level. |
False |
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The flexible budget reflects manufacturing costs at different production volumes. |
True |
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The materials budget does not affect future cash requirements. |
False |
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Repairs and maintenance are semivariable costs |
True |
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Depreciation and supervisors' salaries are fixed costs. |
True |
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In the budgeted income statement, the finished goods inventories are shown at the budgeted sales price per unit. |
False |
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A flexible budget makes it possible to compare actual costs with what costs should have been for the volume actually attained. |
True |
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A written plan containing detailed estimates of products or groups of products expected to be sold during the budget period. |
Sales budget |
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Schedule showing the number of units of each material to be used and to be purchased during the budget period. |
Materials Budget |
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Shoes the materials expected to be used during the year. |
Materials usage budget |
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Shows the materials purchase requirements in units. |
Materials Purchases Budget |
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Materials Useage Budget |
Total Quantity Required (times) Price Per Unit Budgeted Cost of Materials Required |
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Schedule of Standard Direct Costs |
Direct Materials Quantity (times) Cost Per Unit (equals) Cost per material Direct Labor Hours Per Unit (times) Rate per unit (equals) Costs Per Unit |
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Materials Purchases Budget |
Quantity Required per Product Total Quantity Required for X Products (plus) Budgeted ending inventory of Raw Materials (equals) Total Budgeted Requirements (minus) Beginning inventory of Raw Materials (equals) Total Budgeted Purchases (times) Price Per Unit (equals) Cost of purchases |
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Controllable costs include |
Indirect Materials Indirect Labor Payroll Taxes Electric Power Other Overhead |
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Noncontrollable Costs |
Depreciation Property Taxes Insurance |
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Flexible Overhead Budget |
Controllable Costs Variable Cost Element Per Hour (times) No. of Hours (plus) Fixed Cost Element (equals) Total Controllable Costs (plus)Noncontrollable Costs (equals) Total Budgeted Costs |
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Departmental Manufacturing Overhead Budget |
Same as flexible budget with all the departments. |
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Manufacturing Costs Budget |
Materials Used (plus) Direct Labor (plus) Total Manufacturing Overhead Costs (equals) Costs of Goods Manufactured Cost Per Unit Manufactured Materials Direct Labor Manufacturing Overhead Costs (Total Mfg Overhead divided by number of units produced) (equals) Total manufacturing cost per chest |
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Operating Expenses Budget |
Operating Expenses (plus) Administrative & General Expenses (equal) Total operating expenses |
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Budgeted Income Statement |
Revenue Sales Finished Goods Inventory-Beginning (plus) Cost of Goods Manufactured (equal) Total Goods Available for Sale (minus) Finished Goods Inventory-Ending (equals) Cost of Goods Sold (minus) from Sales (equal) Gross Profit on Sales (minus) Operating Expenses (equal) Net Income Before Income Taxes |
