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a. Static Budget
b. Continuous Budget
c. Zero-Based Budget
d. Flexible Budget
2.The production budgets are used to prepare which of the following budgets?
a. Operating expenses
c. Sales in dollars
d. Sales in units
A. Production budget
B. Sales budget
4.McCabe Manufacturing Co.'s static budget at 8,000 units of production includes $40,000 for direct
labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible
budget would show _______.
A)variable costs of $49,500 and $25,875 of fixed costs
Budgeted
Working: 40,000/8000=$5/unit
$4,000/8000=$0.5/unit
Flexible:
9000*$5=$45,000
9000*0.5=4500
5.. The first budget customarily prepared as part of an entity's master budget is the:
a. production budget
b. cash budget
c. sales budget