Question

1) Which budget is the starting point in preparing financial budgets?

Group of answer choices

A) the budgeted balance sheet

B) the capital expense budget

C) the budgeted income statement

D) the cash receipts budget

2) The direct materials budget is prepared using which budget's information?

Group of answer choices

A) raw materials budget

B) cash receipts budget

C) cash payments budget

D) production budget

3. Which of the following includes only financial budgets?

Group of answer choices

A) budgeted income statement, direct material purchases budget, cash budget

B) production budget, capital asset budget, budgeted balance sheet

C) cash budget, budgeted balance sheet, capital asset budget

D) capital asset budget, budgeted income statement, sales budget

4. When is the material price variance favorable?

Group of answer choices

A) when the actual price paid is greater than the standard price

B) when the actual quantity used is less than the standard quantity

C) when the actual price is less than the standard price

D) when the actual quantity used is greater than the standard quantity.

5.What are some possible reasons for a direct labor time variance?

Group of answer choices

A) less qualified workers

B) utility usage decrease

C) office supplies spending

D) sales decline

Answer 1

Solution 1:

"The cash receipts budget" is the starting point in preparing financial budgets.

Hence option D is correct.

Solution 2:

The direct materials budget is prepared using "Production Budget"

Hence option D is correct.

solution 3:

Financial budget includes "cash budget, budgeted balance sheet, capital asset budget"

Hence option C is correct.

Solution 4:

Material price variance is favorable when "when the actual price is less than the standard price"

Hence option C is correct.

Solution 5:

Possible reasons for direct labor time variance are "less qualified workers"

Hence option A is correct.