Question

A plan showing the units of goods to be sold and the sales derived is called the:

	Master Budget
	Sales Budget
	Receivables Budget
	Production Budget

Employees impacted by the budget should prepare the budget.

	True
	False

Inventory that we want left at the end of the year is referred to as safety stock.

	True
	False

Answer 1

1. Correct answer is sales budget as it describes how resources should be optimized to achieve forecasted sales. It shows units to be sold and sales derived.

Master budget is incorrect as it is combiantion of all the smaller budgets.
Recievable budget is budget relating to recievable asset.
Production budget is budget related to estimation of production of goods.

2.Statement is incorrect as employees impacted by budget should be consulted before preparing budget.

3.statement is correct as safety stock is inventory we want to be left at the end if year to avoid any uncertainty where inventory cannot be bought.