ACC 241; Exam 3 questions well
answered
Master Budget - correct answer ✔✔ - Used to communicate management's plans for the
upcoming period throughout the organization.
- Used to allocate a company's resources and coordinate its activities.
Budget Committee - correct answer ✔✔ Group of senior level managers responsible for
developing budgeting policies and overseeing the budget preparation process.
- President and VP in charge of sales, production, and purchasing.
Budget Order - correct answer ✔✔ 1. Sales
2. Production
3. Material, Labor, MOH
4. Ending Inventory
5. Selling Administrative Expenses
6. Cash
7. Income Statement and Balance Sheet
Rolling Budget - correct answer ✔✔ A budget that is continuously updated by adding months to
the end of the budgeting period.
Financial Budget - correct answer ✔✔ Projects both the collection and payment of cash and
forecast the company's budgeted balance sheet.
, Production Budget - correct answer ✔✔ Used to forecast how many units should be made to
meet the sales projections.
Zero Based Budgeting - correct answer ✔✔ When an organization builds its budgets from the
ground up.
Strategic Planning - correct answer ✔✔ A process of setting long term goals that may extend
several years into the future.
Slack - correct answer ✔✔ When managers make room into their budgets to protect
themselves against unanticipated expenses or lower revenues.
Variance - correct answer ✔✔ The difference between actual and budgeted figures and is used
to evaluate how well the manager controlled operations during the period.
Safety Stock - correct answer ✔✔ Extra inventory of finished goods that is kept on hand in case
demand is higher than predicted or problems in the factory slow production.
Operating Budgets - correct answer ✔✔ sales budgets and productions budgets are examples
of. . .
Participative Budgeting - correct answer ✔✔ budgeting process that begins with departmental
managers and flows up through middle management to top management.
Cost Center - correct answer ✔✔ Responsible for costs incurred but have no revenue
responsibilities.
answered
Master Budget - correct answer ✔✔ - Used to communicate management's plans for the
upcoming period throughout the organization.
- Used to allocate a company's resources and coordinate its activities.
Budget Committee - correct answer ✔✔ Group of senior level managers responsible for
developing budgeting policies and overseeing the budget preparation process.
- President and VP in charge of sales, production, and purchasing.
Budget Order - correct answer ✔✔ 1. Sales
2. Production
3. Material, Labor, MOH
4. Ending Inventory
5. Selling Administrative Expenses
6. Cash
7. Income Statement and Balance Sheet
Rolling Budget - correct answer ✔✔ A budget that is continuously updated by adding months to
the end of the budgeting period.
Financial Budget - correct answer ✔✔ Projects both the collection and payment of cash and
forecast the company's budgeted balance sheet.
, Production Budget - correct answer ✔✔ Used to forecast how many units should be made to
meet the sales projections.
Zero Based Budgeting - correct answer ✔✔ When an organization builds its budgets from the
ground up.
Strategic Planning - correct answer ✔✔ A process of setting long term goals that may extend
several years into the future.
Slack - correct answer ✔✔ When managers make room into their budgets to protect
themselves against unanticipated expenses or lower revenues.
Variance - correct answer ✔✔ The difference between actual and budgeted figures and is used
to evaluate how well the manager controlled operations during the period.
Safety Stock - correct answer ✔✔ Extra inventory of finished goods that is kept on hand in case
demand is higher than predicted or problems in the factory slow production.
Operating Budgets - correct answer ✔✔ sales budgets and productions budgets are examples
of. . .
Participative Budgeting - correct answer ✔✔ budgeting process that begins with departmental
managers and flows up through middle management to top management.
Cost Center - correct answer ✔✔ Responsible for costs incurred but have no revenue
responsibilities.
