ACCT 2037 FINAL EXAM AND 100%
CORRECT ANSWERS 2025-2026
UPDATED.
Budgeting - Answer the process of planning future business actions and expressing them as
formal plans
budget - Answer a formal statement of a company’s plans, expressed in monetary terms-
shorter periods
Budgetary control process - Answer refers to management's use of budgets to monitor and
control a company's operations.
1. Develop budget
2. Compare results to budget
3. Take action
4. Set new plans
5. Repeat
Benefits of Budgeting - Answer planning, control, coordination, communication, motivation
3 important guidelines of the budgeting process: - Answer 1. employees affected by a budget
should be consulted when it is prepared
2. goals reflected in a budget should be attainable
3. evaluations should be made carefully with opportunities to explain any failures
continuous budgeting - Answer a company continually revises its budgets as time passes
rolling budget - Answer a company revises its entire set of budgets by adding a new
quarterly budget to replace the quarter that just elapsed
master budget - Answer a formal, comprehensive plan for a company's future
, production budget - Answer shows the number of units to be produced in a period
Safety Stock - Answer a quantity of inventory that provides protection against lost sales
caused by unfulfilled demands from customers or delays in shipments from suppliers
Units to produce= - Answer budgeted Budgeted Beginning finished
ending +. Sales - Goods inventory
inventory (units) (units)
(units)
3 steps to complete the production budget - Answer 1. compute budgeted ending inventory
based on company's inventory policy
2. add budgeted sales (from sales budget)
3. subtract beg. inventory
Direct Materials Budget - Answer shows the budgeted costs for the direct materials that will
need to be purchased to satisfy the estimated production for the period
materials to be purchased= - Answer Budgeted. Materials Budgeted Beg.
production. X. Required for. +. end. materials - materials
(units) each unit (lbs). inventory inventory
direct labor budget - Answer shows the budgeted costs fo DL that will be needed to satisfy
the budgeted production for the period
Budgeted DL Costs($) = - Answer Budgeted DL required DL Cost
Production. X. per units X. Per hour
(units) (units) ($)
Factory OH Budget - Answer shows budgeted costs for factory. OH that will be needed to
compete the budget production for. the period
CORRECT ANSWERS 2025-2026
UPDATED.
Budgeting - Answer the process of planning future business actions and expressing them as
formal plans
budget - Answer a formal statement of a company’s plans, expressed in monetary terms-
shorter periods
Budgetary control process - Answer refers to management's use of budgets to monitor and
control a company's operations.
1. Develop budget
2. Compare results to budget
3. Take action
4. Set new plans
5. Repeat
Benefits of Budgeting - Answer planning, control, coordination, communication, motivation
3 important guidelines of the budgeting process: - Answer 1. employees affected by a budget
should be consulted when it is prepared
2. goals reflected in a budget should be attainable
3. evaluations should be made carefully with opportunities to explain any failures
continuous budgeting - Answer a company continually revises its budgets as time passes
rolling budget - Answer a company revises its entire set of budgets by adding a new
quarterly budget to replace the quarter that just elapsed
master budget - Answer a formal, comprehensive plan for a company's future
, production budget - Answer shows the number of units to be produced in a period
Safety Stock - Answer a quantity of inventory that provides protection against lost sales
caused by unfulfilled demands from customers or delays in shipments from suppliers
Units to produce= - Answer budgeted Budgeted Beginning finished
ending +. Sales - Goods inventory
inventory (units) (units)
(units)
3 steps to complete the production budget - Answer 1. compute budgeted ending inventory
based on company's inventory policy
2. add budgeted sales (from sales budget)
3. subtract beg. inventory
Direct Materials Budget - Answer shows the budgeted costs for the direct materials that will
need to be purchased to satisfy the estimated production for the period
materials to be purchased= - Answer Budgeted. Materials Budgeted Beg.
production. X. Required for. +. end. materials - materials
(units) each unit (lbs). inventory inventory
direct labor budget - Answer shows the budgeted costs fo DL that will be needed to satisfy
the budgeted production for the period
Budgeted DL Costs($) = - Answer Budgeted DL required DL Cost
Production. X. per units X. Per hour
(units) (units) ($)
Factory OH Budget - Answer shows budgeted costs for factory. OH that will be needed to
compete the budget production for. the period
