Market Segmentation through CRM
Operational Budgeting
True/False
2. The typical starting point of a master budget would be to prepare a budgeted balance sheet.
Answer: False
4. A company that is profitable may not have sufficient cash on hand to meet their immediate needs.
Answer: True
5. In a master budget the sales forecast would be dependent upon the budgeted production figures.
Answer: False
8. The behavioral approach to budgeting has as its goal the complete elimination of inefficiency.
Answer: False
9. A budget prepared using the total quality management approach is always achievable by departments within a company.
Answer: False
11. A company 's operating cycle is the time between purchases of direct materials and conversion of these materials back into cash.
Answer: True
12. The operating cycle is the average time required to manufacture products for sale.
Answer: False
13. Because a budget is merely a forecast of future events, its benefits are extremely narrow and limited.
Answer: False
15. If the behavioral approach is employed to determine the levels at which budgeted amounts are set, then reasonable and achievable levels should be used.
Answer: True
16. A master budget is a comprehensive financial plan setting forth the financial and operational goals of a business.
Answer: True
17. A master budget actually includes a number of related budgets.
Answer: True
18. In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast.
Answer: True
20. A cash budget determines the maximum limit amount of money that can be spent during the period.
Answer: False
21. The preparation of a budgeted balance sheet requires consideration of the budgeted capital expenditures and budgeted net income.
Answer: True
22. A debt service budget summarizes cash payments required for interest, and includes those required
True/False
2. The typical starting point of a master budget would be to prepare a budgeted balance sheet.
Answer: False
4. A company that is profitable may not have sufficient cash on hand to meet their immediate needs.
Answer: True
5. In a master budget the sales forecast would be dependent upon the budgeted production figures.
Answer: False
8. The behavioral approach to budgeting has as its goal the complete elimination of inefficiency.
Answer: False
9. A budget prepared using the total quality management approach is always achievable by departments within a company.
Answer: False
11. A company 's operating cycle is the time between purchases of direct materials and conversion of these materials back into cash.
Answer: True
12. The operating cycle is the average time required to manufacture products for sale.
Answer: False
13. Because a budget is merely a forecast of future events, its benefits are extremely narrow and limited.
Answer: False
15. If the behavioral approach is employed to determine the levels at which budgeted amounts are set, then reasonable and achievable levels should be used.
Answer: True
16. A master budget is a comprehensive financial plan setting forth the financial and operational goals of a business.
Answer: True
17. A master budget actually includes a number of related budgets.
Answer: True
18. In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast.
Answer: True
20. A cash budget determines the maximum limit amount of money that can be spent during the period.
Answer: False
21. The preparation of a budgeted balance sheet requires consideration of the budgeted capital expenditures and budgeted net income.
Answer: True
22. A debt service budget summarizes cash payments required for interest, and includes those required