E9.1 (LO 1), C Writing Trusler Company has always done some planning for the future, but the company has never prepared a formal budget. Now that the company is growing larger, it is considering preparing a budget. Instructions Write a memo to Jim Dixon, the president of Trusler Company, in which you define budgeting, identify the budgets that comprise the master budget, identify the primary benefits of budgeting, and discuss the essentials of effective budgeting.

E9.1 (LO 1), C Writing Trusler Company has always done some planning for the future, but the company has never prepared a formal budget. Now that the company is growing larger, it is considering preparing a budget. Instructions Write a memo to Jim Dixon, the president of Trusler Company, in which you define budgeting, identify the budgets that comprise the master budget, identify the primary benefits of budgeting, and discuss the essentials of effective budgeting.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. If a company uses participative budgeting, which group should prepare the initial set of budget dollar amounts? a. Budget committee b. Operating department managers c. Top management d. Accounting department
2. State whether the following sentences are TRUE or FALSE ASTARINS # Statements 1 The production budget is typically prepared prior to the sales budget. One benefit of budgeting is that it coordinates the activities of the entire organization. The master budget is a network consisting of many separate budgets that are interdependent. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. 5 A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units of product. 2 3 4 TRUE or FALSE 3. Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales B. Production, Cash, Income Statement C. Sales, Balance Sheet, Direct Labor D. Production, Manufacturing Overhead, Sales 1280 4. Which of the following represents the correct order in which the indicated budget documents…
Asumme the company has always used a ‘traditional’ incremental approach towards building its budgets to plan for the future. The company is now concerned that this may not be appropriate in the current turbulent political and economic environment which he believes may last for a number of years. As a result, he has also asked you for advice about how he might adopt a more flexible planning approach without losing financial control. Critically review the current budget preparation process. Critically analyse the potential advantages and disadvantages of adopting a ‘beyond budgeting’ approach instead. Provide Cameron with a recommendation(s) for the future based on your findings.
The includes all other budgets to present a complete and comprehensive view of the company's financial position. A) zero-based budget O B) master budget O C) operating budget O D) financial budget O E) capital budget
Ma 1 Prepare a PLANNED BUDGET for the month of December 2022 for your imaginary company assuming any level of activity. Prepare a SUMMARY OF ACTUAL RESULTS for the month of December 2022 for your imaginary company assuming any level of activity different from planned level of activity. That means, if you prepare a planned budget for 1000 units, your actual results should be for more than or less than 1000 units. Prepare a FLEXIBLE BUDGET for the actual level of activity for the month of December 2022 for your imaginary company. Prepare a PERFORMANCE REPORT (by comparing actual results with flexible budget) and shows therein REVENUE AND SPENDING VARIANCES.
Which of the following is NOT true about Budgets? A) Budgets start with the Sales Budget B) The Cash budget is prepared before the Operating budget C) Process of evaluating performance can be improved by using budgets D) The Master Budget is ordinarily separated into monthly and quarterly budgets
A cash budget a. is an optional feature of a master budget. b. requires input from all parts of the organization. c. takes the place of another budget. d. is prepared only at year end.
Question 2: (): A1, C2, C3 "In the annual meeting of Brixton company, the Head of the accounting department of the company suggested to the top Management to switch the budgetary system from Zero-based budget to Rolling budget " Required: What is the budgetary setting style in Brixton Company? And Briefly Explains the differences between Rolling budgetary and Zero-based budgets.
Which of the following statements is true? 1. Budgets are used for the distinct purposes of planning and profit. II. Control Involves developing goals and preparing various budgets to achieve those goals. III. A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. Multiple Choice None of the statements are true. Only statement Ill is true. ○ Only statement I is true. All of the statements are true. B
You are in the process of creating your department's projected operating budget. As you create this budget, you realize that you are very uncertain about the volume of services you will be providing in the future. What tool(s) can you use to understand the impact of that uncertainty on your budget? O A. Ratio analysis O B. Varlance analysis O C. None of these O D. Sensitivity analysis O E. Scenario analysis
32. Which of the following statements about budget acceptance in an organization is true? Group of answer choices The most widely accepted budget by the organization is the one prepared by top management. Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. The most widely accepted budget by the organization is the one prepared by the department heads. Budgets are hardly ever accepted by anyone except top management.
Answer this question İn some organizations (firms, universities, government agencies), spending appears to increase as the end of the budgeting period approaches, even if there are no seasonal differences. What might cause this? (A). "Our cash budget shows a surplus for the quarter, so we do not have to think about arranging any bank financing." Comment on this statement. (B). Accrual accounting is preferable to cash flow accounting because the information is more relevant to all users of financial statements. Discuss and answer the question