It is important that budgets be accepted by Question 16 options- supe.docx

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It is important that budgets be accepted by Question 16 options: supervisors. all of these answers are correct. department heads. division managers. An overly optimistic sales budget may result in Question 17 options: increases in selling prices late in the year. increased sales during the year. insufficient inventories. excessive inventories. If the required direct materials purchases are 36,000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds? Question 18 options: 54,000 90,000 18,000 36,000 The single most important output in preparing financial budgets is the Question 19 options: budgeted income statement. determination of the unit cost of the product. sales forecast. cash budget. Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser? Question 20 options: Sales budget Budgeted income statement Cash budget Direct labor budget Solution Solution 16. All of these are correct. Solution 17. Insufficient inventories. Solution 18. Purchases = 36000 Consumption = 36000*3 = 108000 Opening stock = 36000*3.5 = 126000 Closing stock = Opening stock + Purchases - Consumption = 126000 + 36000 - 108000 = 54000 pounds Solution 19. Cash Budget. Solution 20. Direct labor budget. .

Formation

Question 20 options:
Sales budget
Budgeted income statement
Cash budget
Direct labor budget
Solution
Solution 16. All of these are correct.
Solution 17. Insufficient inventories.
Solution 18.
Purchases = 36000
Consumption = 36000*3 = 108000
Opening stock = 36000*3.5 = 126000
Closing stock = Opening stock + Purchases - Consumption = 126000 + 36000 - 108000 = 54000
pounds
Solution 19. Cash Budget.
Solution 20. Direct labor budget.

It is important that budgets be accepted by Question 16 options- supe.docx

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