1._____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix.
A. Budgeting analysis
D. Financial planning
2.A sales forecast is _____.
A. a prediction of sales under a given set of conditions
B. the same as a sales budget that will generate a desired level of sales
C. all of these answers are correct
D. the ...view middle of the document...
A. sales prediction
B. budget forecast
C. sales forecast
D. sales budget
4. _____ need cost accounting systems.
A. Manufacturing firms and service organizations
B. Manufacturing firms and nonprofit organizations
C. Manufacturing firms, service organizations, and nonprofit organizations
D. Service organizations and nonprofit organizations
5. _____ probably would not be used as a measure of activity in a flexible budget.
A. Sales volume
B. Number of machine hours used
C. Number of hours worked by salespeople
D. Number of direct labor hours worked
6. _____ are components of a master budget.
A. A continuous budget and a static budget
B. An operating budget and a financial budget
C. A strategic plan and an operating budget
D. A cash budget and an activity budget
7. The master budget quantifies targets for all of the following except _____.
D. cost driver activity
8. Costs are allocated for all the following purposes except to
A. determine inventory levels
B. obtain reimbursement
C. predict the economic effects of planning and control decisions
D. compute income and asset valuation