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Business 1b

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Chapter 23 Quiz

1.
The total quality management approach to budgeting sets budgeted amounts at levels that can be achieved through reasonably efficient operations. | True | | False |
2.
The typical starting point of a master budget would be to prepare a budgeted balance sheet. | True | | False |
3.
A flexible budget allows management to spend more or less for labor and materials without regard to the amount of production. | True | | False |
4.
In a master budget, the sales forecast would be dependent upon the budgeted production figures. | True | | False |
5.
Flexible budgets can be prepared for sales budgets but not for productions budgets. | True | | False |
6.
The behavioral approach to budgeting has as its goal the complete elimination of inefficiency. | True | | False |

7.
A budget prepared using the total quality management approach is always achievable by departments within a company. | True | | False |
8.
A company's operating cycle is the time between purchases of direct materials and conversion of these materials back into cash. | True | | False |
9.
The operating cycle is the average time required to manufacture products for sale. | True | | False |
10.
Under the "total quality management" philosophy, budgeted amounts should be set at realistic and achievable levels rather than at levels representing absolute efficiency. | True | | False |
11.
A master budget actually includes a number of related budgets. | True | | False |
12.
In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast. | True | | False |
13.
A cash budget determines the maximum amount of money that can be spent during the period. | True | | False |
14.
A debt service budget

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