Exam (elaborations)
CHAPTER 22 MANAGERIAL ACCOUNTING QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
CHAPTER 22 MANAGERIAL ACCOUNTING QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Content preview
CHAPTER 22 MANAGERIALACCOUNTING QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
Budget objectives - ANSWER 1: develop strategies 2: act 3: compare strat to actual result
Budget benefits - ANSWER Require managers to plan ahead and promote coordination/communication
in group environment as well as benchmark to evaluate performance
Strategic budget - ANSWER Long term financial plan 3-10 yrs
Operational budget - ANSWER Short term financial plan 1 week- 1 yr
Static budget - ANSWER Budget prepared for 1 volume of sales
Flexible budget - ANSWER Budget prepared for multiple volumes of sales
Master budget - ANSWER Budgeted financial statements for entire organization (operational and static)
(includes operating, capital expenditures, and financial budgets)
Operating budget - ANSWER Budget that forecasts sales rev., cost of goods sold, selling and admin
expenses, all of which feed into CASH BUDGET and BUDGETED FINANCIAL STATEMENTS
Capital expenditures budget - ANSWER Company's plan for purchasing property, plant and equipment as
well as other long-term assets
Financial budget - ANSWER Cash budget and budget and financial statements
Cash budget - ANSWER Details how business will go from beginning cash balance to desired ending cash
balance (feeds into financial budget).
Sales budget - ANSWER Forecast of sales revenue is the cornerstone of master budget
Production budget - ANSWER Determines the number of products to be produced during the year and is
the basis for the production cost budget: direct materials budget, direct labor budget, manufacturing
overhead budget and the cost of good sold budget
Budgeted tablets to be produced calculation: - ANSWER (Budgeted products sold) + (desired product in
ending inventory) = Total product needed in ending inventory
Total product needed in ending inventory - product in beginning inventory= Budgeted product to be
produced
Direct materials budget - ANSWER -Part of product cost for product
-amount of materials in Raw Materials inventory account is assumed to be only direct materials since
indirect materials are insignificant.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73091 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now