Matching Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note that not all key terms and concepts will be used. Answers are provided at the end of this chapter.a. Budgetingb. Top-down budgetingc. Participative budgetingd. Zero-based budgetinge. Single-period budgetf. Rolling (or continuous) budgetg. Operating budgeth. Budget slack (or budget padding)i. Cash budgetj. Committed costk. Discretionary costl. Standard costm. Ideal (or engineered) standardn. Attainable standardo. Past experience standardp. Predetermined overhead application rate____ 1. A budgeting process that involves justifying resource requirements based on an analysis and prioritization of unit objectives without reference to prior period budget allowances.____ 2. A budgeting approach that implies little or no input from lower levels of management.____ 3. A budget that is prepared for several periods in the future and that is revised several times prior to the budget period.____ 4. A plan comprised of the sales budget (or sales forecast), the purchases/ production budget, the operating expense budget, the income statement budget, the cash budget, and the budgeted balance sheet.____ 5. A budgeting process that involves input and negotiation at several management layers.____ 6. Allowances for contingencies built into a budget.____ 7. A cost that is incurred because of a long-range policy decision.____ 8. A unit budget allowance for a cost component of a product or an activity. ____ 9. A standard cost or production standard that is based on historical data.____ 10. A standard cost or production standard that assumes optimal operating conditions and maximum efficiency at all times.____ 11. The rate per unit of activity (e.g., direct labor hour) used to apply manufacturing overhead to work in process.____ 12. A standard cost or production standard that is achievable under actual operating conditions.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Matching Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note that not all key terms and concepts will be used. Answers are provided at the end of this chapter.
a. Budgeting
b. Top-down budgeting
c. Participative budgeting
d. Zero-based budgeting
e. Single-period budget
f. Rolling (or continuous) budget
g. Operating budget
h. Budget slack (or budget padding)
i.
j. Committed cost
k. Discretionary cost
l.
m. Ideal (or engineered) standard
n. Attainable standard
o. Past experience standard
p. Predetermined
____ 1. A budgeting process that involves justifying resource requirements based on an analysis and prioritization of unit objectives without reference to prior period budget allowances.
____ 2. A budgeting approach that implies little or no input from lower levels of management.
____ 3. A budget that is prepared for several periods in the future and that is revised several times prior to the budget period.
____ 4. A plan comprised of the sales budget (or sales
____ 5. A budgeting process that involves input and negotiation at several management layers.
____ 6. Allowances for contingencies built into a budget.
____ 7. A cost that is incurred because of a long-range policy decision.
____ 8. A unit budget allowance for a cost component of a product or an activity.
____ 9. A standard cost or production standard that is based on historical data.
____ 10. A standard cost or production standard that assumes optimal operating conditions and maximum efficiency at all times.
____ 11. The rate per unit of activity (e.g., direct labor hour) used to apply manufacturing overhead to work in process.
____ 12. A standard cost or production standard that is achievable under actual operating conditions.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
