Budget Components
Operating Budgets
Budget Calcs
Budget, Budget, Budget!
Disney Trivia
100
How is sales revenue calculated?
Units Sold x Selling Price
100
This budget determines the number of units that need to be made during a period.
Production Budget
100
Compute the sales budget?
$3,000
(120 units x $25)
100
Which phase of management involves the creation of a budget?
Planning
100
What does Cinderella's fairy godmother turn into a carriage?
Pumpkin
200
What is the formula to calculate units to be produced?
Sales + Target Ending Inventory - Beginning Inventory
200
The main component of the financial budget is?
Cash Budget
200
Calculate the budgeted MOH using the following:
$5,270
200
Company ABC is planning on expanding their machinery. They hope to do this in the next 9 months. This is an example of what type of objective?
Short-term objective
200
What is the name of the boy who has the toy Buzz Lightyear in Toy Story?
Andy
300
Production, Direct Labor, and SG&A budgets are all what type of budgets?
Operating Budgets
300
The culmination of all financial budgets results in what financial statement?
Balance Sheet
300
Calculate the direct labor budget using the following information:
$4,200
(140 units x 2 hours x $15)
300
Give 3 benefits of budgeting
Communication
Goal Setting
Motivation
Coordination
Training
300
What song does Elsa sing while building the castle in Frozen?
Let It Go
400
What is the order of items on the budgeted income statement?
Revenue - COGS = Gross Margin - SG&A = Income
400
The COGS budget uses information from what budgets?
Sales, Direct Materials, Direct Labor, and Manufacturing Overhead
400
Company A has sales in the month of January of $10,000 and the month of February of $15,000. Cash sales are estimated to be 75%. Credit sales are collected over two months with 70% being in the month of sale and 20% the following month.
What are the cash receipts for the month of February?
$14,375
($15,000x75%)+($15,000x25%x70%)+
($10,000x 25% x 20%)
400
Comparing actual results to budgeted numbers is utilizing what function of management?
Control
400
What does Dumbo use to fly?
A Feather
500
Company A has sales of $40,000 and they expect to receive $25,000 in cash. They have cash payments of:
Assuming they maintain a cash balance of $15,000 how much will they need to borrow?
$1,300
$25,000 - 2,500 - 800 - 6,000 - 2,000 = $13,700
$15,000 -$13,700 = $1,300
500
Put the following budgets in order of preparation:
500
Compute the total COGS using the following:
$23,500
500
Company A expects to produce 500 units, each unit takes 3 feet of material and material costs $2 per foot. Ending inventory for the month is expected to be 400 feet and beginning inventory is 350 feet. Calculate the raw materials purchases.
$3,100
500
In Robin Hood, what type of animal was Robin?
A fox