Question

1. For the coming month your company estimates sales to be $100,000 and then increase by 5% for two months more. Assume the beginning inventory for the coming month estimated to be $20,000 and the ending inventory 30% of cost of goods sold, cost of goods sold estimation is 60% of sales, what is the estimated purchases in dollars.Your answer should be in this form $12,311.21 and do not include formulas

2. Flexible budgeting use

a. Several levels of activities

b. one level of activities

c. both of the above

d. none of the above

3. Static budgets is important for a company that:

a. does not face different possibilities of production

b. face different possibilities of production

c. achieve all stakeholders' objectives

d. achieve changes in economy

4. A cash budget includes cash receipts, cash disbursements, and expected cash balances for specific period of time.

True or false

5. At the end of February this year account receivable was $60,000. The Cash collection from the sales during February was 40% and the remaining to be collected next month. Find the total sales realized during February.

6. Imposed budgets are when senior managers set performance goals by consulting the individuals who will be responsible for meeting those goals.

7. Budgeting is important for

a. Exclusiveness for planning and control

b. or future decision making

c. for all issues related to planning, control and decision making

d. All of the above

8. Budgets are always prepared for less than one year.

True of False

Answer 1