1. Question : (TCO 5) Which is NOT a component of the master budget?

Student Answer:

Sales budget

Capital budget

Cost of goods sold budget

Budget to actual variance analysis

Instructor Explanation: See Chapter 8.

2. Question : (TCO 5) The budgets that are comprehensive financial plans made up of various individual departmental & activity budgets are the

Student Answer:

operating budgets.

master budgets.

financial budgets.

continuous budgets.

Instructor Explanation: See Chapter 8.

3. Question : (TCO 5) The budget committee

Student Answer:

has the responsibility to review the budget.

resolves differences that may arise as the budget is prepared.

prepares financial statements...