ACNT 2402 Chapter 07 -Questions and Answers 2023& study guide with complete solution

1. The cash budget is usually prepared after the budgeted income statement. FALSE 2. The manufacturing overhead budget is typically prepared before the production budget. FALSE 3. Self-imposed budgets prepared by lower-level managers should be scrutinized by higher levels of management. TRUE 4. The basic idea underlying responsibility accounting is that each manager should be held responsible for the overall profit of the company to ensure that all managers are acting together. FALSE 5. Budgets are used to plan and to control operations. TRUE 6. The sales budget is usually prepared before the production budget. TRUE 7. A continuous or perpetual budget is a budget that almost never needs to be revised. FALSE 8. A self-imposed budget is a budget that is prepared with the full cooperation and participation of managers at all levels. TRUE 9. The s