Ch 23 Question 1 Which of the following is not a benefit derived from budgeting? Question options: a) The budget fund provides assurance that cash will be available to meet budgeted expenditures. b)...

Ch 23 Question 1 Which of the following is not a benefit derived from budgeting? Question options: a) The budget fund provides assurance that cash will be available to meet budgeted expenditures. b) The budget may provide advance warning of future economic problems. c) The budget provides a yardstick for evaluation managerial performance. d) Management is made more aware of the economic environment of the business. Question 2 Which of the following is a factor that causes a rapidly growing business to become profit rich, yet cash poor? Question options: a) Slow sales growth. b) Slow accounts receivable turnover. c) Slow sales growth. d) Fast inventory turnover. Question 3 Which of the following is a characteristic of the total quality approach to setting budgetary targets? Question options: a) Budgetary targets that are reasonable. b) A perception that the budget is fair. c) Budget performance expectations that can be exceeded. d) Absolute efficiency. Question 4 Which of the following is an element of a master budget? Question options: a) An employee turnover budget. b) A waste and spoilage budget. c) A production schedule. d) A labor efficiency budget. Question 6 Which of the following steps in the preparation of a master budget would logically be performed first? Question options: a) Prepare a budget of manufacturing costs. b) Prepare a sales forecast. c) Prepare a cash budget. d) Prepare a production schedule. Question 7 With respect to flexible budgeting, all of the following statements are true except: Question options: a) Varinace from budgeted amounts are more meaningful if the budget is adjusted to reflect actual levels of production. b) The concepts of flexible budgeting are a combination of budgeting concepts and the concepts of cost-volume-profit analysis. c) One reason for preparing a flexible budget is that fixed costs vary dramatically at different levels of production. d) Flexible budgets can be adjusted to show budgeted revenue, costs, and cash flows at different levels of ac