76) When budgets are formulated with the active participation of all affected employees, the process is called
A) financial budgeting.
B) mathematical budgeting.
C) participative budgeting.
D) relative budgeting.
77) Which of the following statements is NOT true?
A) Managers often compare actual results with budgets in evaluating subordinates.
B) Too often, top management and accountants are overly concerned with the mechanics of budgets.
C) A serious human relations problem arises when budgets stress one set of performance goals, but employees and managers are rewarded for performance on other dimensions.
D) All of the above are true statements.
78) Mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix are called
A) working models.
B) financial planning models.
C) accounting models.
D) master models.
79) An extremely powerful and flexible tool for budgeting is a(n)
B) budget model.
D) accounting model.
80) ________ for budgeting is the systematic varying of budget data input to determine the effects of each change on the budget.
A) Sensitivity analysis
B) What-if analysis
C) Strategic planning
D) Both a and b
Projected sales for Kenworth Inc. for next year and beginning and ending inventory data are as follows:
Targeted ending inventory
Each unit requires 5 pounds of material which costs $3.00 per pound. The beginning inventory of raw materials is 5,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year. Each unit produced requires 2 hours of direct labour time, which is billed at $8 per hour.
81) Budgeted sales would be
82) According to the production budget, how many units should be produced?
83) Pounds of material to be purchased would be
84) The budgeted total purchase cost of direct materials would be
85) The budgeted number of total direct labour hours needed would be
86) The budgeted total direct labour cost would be