B. 9. Which of the following is an operating budget?

a. Cash budget c. Budgeted balance sheet

b. Sales budget d. Capital expenditure budget

A/D 10. Which of the following is needed to prepare a production budget?

a. Budgeted unit sales c. Beginning work in process units

b. Budgeted raw materials to be purchased d. Estimated cost of goods sold

D/B 11. Which of the following sections appears on a cash budget?

a. Expenses c. Financing

b. Revenues d. Sales

A. 12. Which of the following is one of the main purposes of preparing cash receipts and disbursements
budget?

a. To find investment opportunities for anticipated surpluses

b. To reconcile cash on hand

c. To determine production needed

d. To determine how many units need to be sold

C. 13. Which of the following lists all the cash inflows, except for financing, during the covered period of
the budget?

a. Cash payments section c. Cash receipts section

15. In a cost of production report using process costing, transferred-in costs are similar

to the

a. cost of material added at the beginning of production.

b. conversion cost added during the period.

c. cost transferred out to the next department.

d. cost included in beginning inventory.

16. Which of the following is not a question that needs to be answered with regard to
quality control?

a. What happens to the spoiled units?

b. What is the actual cost of spoilage?

c. How can spoilage be controlled?

d. Why does spoilage happen?

17. Normal spoilage units resulting from a continuous process

a. are extended to the EUP schedule.

b. result in a higher unit cost for the good units produced.

c. result in a loss being incurred.

d. cause estimated overhead to increase