QUESTION
REVIEWING 1 OF 2
A
merchandising company uses a master budget which includes a ________.
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
production budget
·
THE CORRECT ANSWER
cost of goods sold
·
direct labor budget
·
direct materials budget
·
I DON'T KNOW YET
QUESTION
REVIEWING 2 OF 2
Safety
stock is ________.
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
stock purchased by the manager
to ensure return on profits
·
only used when there is an
overage of current inventory
·
unplanned and should never be
considered after an inventory shortage occurs
·
THE CORRECT ANSWER
inventory kept on hand to
account for increases in consumer demand
·
I DON'T KNOW YET
QUESTION
REVIEWING 1 OF 4
Which
of the following is a benefit of budgeting which helps a manager motivate
employees and evaluate performance?
ANSWER
INCORRECT
·
Rolling budget
·
YOU WERE SURE AND INCORRECT
Planning
·
Coordination and communication
·
THE CORRECT ANSWER
Benchmarking
·
I DON'T KNOW YET
QUESTION
REVIEWING 2 OF 4
Strategic
planning ________.
ANSWER
INCORRECT
·
refers to a budget which
provides a means to absorb the costs of overstating budgeted expenses or
understating budgeted revenues
·
YOU WERE SURE AND INCORRECT
involves a budget which starts
at a zero balance and all funds a manager may use must be justified in the
budget
·
THE CORRECT ANSWER
entails the planning and
establishment of long-term goals which extend years into the future
·
involves multiple levels of
management including lower-level managers who provide real-world knowledge for
the establishment of goals
·
I DON'T KNOW YET
QUESTION
REVIEWING 3 OF 4
The
starting point for creating the budget is ________.
ANSWER
INCORRECT
·
current year figures
·
THE CORRECT ANSWER
actual or prior year budgeted
data
·
YOU WERE SURE AND INCORRECT
forecasted results
·
projected results
·
I DON'T KNOW YET
QUESTION
REVIEWING 4 OF 4
Which
of the following budgets is the comprehensive planning document for the entire
organization?
ANSWER
INCORRECT
·
Rolling budget
·
Financial budget
·
YOU WERE SURE AND INCORRECT
Operating budget
·
THE CORRECT ANSWER
Master budget
·
I DON'T KNOW YET
