48.The most useful budget figures are developed:
A. From the "top-down".
B. From the "bottom-up" following a participatory process.
C. By the budget committee.
D. By the CEO.
E. After the accounting period has begun.
49.The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, adding a new budget each period so that the budgets always cover the same number of future periods, is called:
A. Participatory budgeting.
B. Capital budgeting.
C. Balanced budgeting.
D. Continuous budgeting.
E. Primary budgeting.
50.The usual budget period for most companies is:
A. An annual period of 250 working days.
B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
51.Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?
A. The budget committee.
B. The accounting department.
C. The sales department.
D. Top management.
E. The marketing department.
52.The master budgeting process typically begins with the sales budget and ends with a cash budget and:
A. Budgeted financial statements.
B. Forecast budget.
C. Capital expenditures budget.
D. Rolling budget.
E. Production budget.
53.Operating budgets include all of the following budgets except the:
A. Sales budget.
B. Selling expense budget.
C. Cash budget.
D. Merchandise purchases budget.
E. General and administrative expense budget.
54.Operating budgets include all of the following except the:
A. Sales budget.
B. Budgeted balance sheet.
C. Production budget.
D. Selling expense budget.
E. General and administrative expense budget.
55.The master budget of a merchandising company includes a:
A. Production budget.
B. Direct materials budget.
C. Factory overhead budget.
D. Direct labor budget.
E. Purchases budget.
56.The usual starting point for preparing a master budget is forecasting or estimating:
A. Expenditures.
B. Sales.
C. Production.
D. Income.
E. Cash payments.
57.The master budget process usually ends with:
A. The production budget.
B. The sales budget.
C. The selling expense budget.
D. The budgeted balance sheet.
E. The overhead budget.