Identify which of given statements are correctly describe relationships within the master budget .

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Analyzing one company's make or buy and special order proposals OneCo is a retail organization in the Northeast that sells upscale clothing. Each year, store managers (in consultation with their supervisors) establish financial goals; a monthly reporting system captures actual performance. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Product costs Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: · Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. ·…

MYS App Ch 1 M Ques M X Chat Use ta gaut Soluta acco a webs a wear a acco calcuTelesa Requ /ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect ework i ces Saved [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 35,200 units 52,800 units Units completed and transferred out Ending work in process inventory 88,000 units 17,900 units Help Save & Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method 1. All direct materials are added to products when…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Answer 6

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Answer 7

Chapter 23, Problem 1STQ

To determine

Identify which of given statements are correctly describe relationships within the master budget.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Master budget:

Master budget is an interrelated budget that collectively summarizes all the planned activities of the business. Master budget is not a single document and it consist the number of interrelated budgets like sales budget, production budget, and cash budget. The element of master budget would vary based on the size and nature of the business.

Master budget helps the management to review the upcoming quarter budget with the monthly amount of budget figures.

The sales forecast is the starting point in the preparation of a master budget. When the level of sales has been forecast, the production budget is prepared based on the manufacturing cost and operating expense incurred during the year.

Financial budgets are prepared based on the operating budgets, and when there are changes in the operating budget, it would directly affect the financial budgets (budgeted income statement, balance sheet, and cash flow statement.

Option “d” is not a correct answer as per above explanation, only option “a, b and c” are the correct answer as per above explanation. Hence, the correct options are a, b, and c.

Answer 12

Conclusion

Therefore, the correct options are,

a. The production budgets are based in large part on the sales forecast.

b. In many elements of the master budget, the amounts budgeted for the upcoming quarter are reviewed and subdivided into monthly budget figures.

c. The operating budgets affect the budgeted income statement, the cash budget, and the budgeted balance sheet.

Answer 13

Ch. 23 - Prob. 1STQ Ch. 23 - 2. During the first quarter of its operations,...Ch. 23 - 3. Rodgers Mfg. Co. prepares a flexible budget....Ch. 23 - 4. Lamberton Manufacturing Company has just...Ch. 23 - Prob. 5STQ Ch. 23 - Prob. 6STQ Ch. 23 - Prob. 1DQ Ch. 23 - 2. Briefly explain at least three ways in which a...Ch. 23 - Prob. 3DQ Ch. 23 - Prob. 4DQ

Identify which of given statements are correctly describe relationships within the master budget .

Concept explainers

Videos

Identify which of given statements are correctly describe relationships within the master budget.

Answer to Problem 1STQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 23 Solutions