ATENEO DE NAGA UNIVERSITY

College of Business and Accountancy

Accountancy Department

MANAGEMENT ACCOUNTING 2

REVIEW MATERIALS OROSEO TUY II

BUDGETING
1. Kallert Manufacturing uses a companys budget only as a planning tool. Management has decided
that it would be beneficial to also use budgets for control purposes. In order to implement this
change, the management accountant must
a. Appoint a budget director
b. Organize a budget committee
c. Develop forecasting procedures
d. Report daily to operating management any deviations from plan
e. Synchronize the budgeting and accounting system with the organizational structure

2. A planning calendar in budgeting is the

a. Calendar period covered by the budget
b. Schedule of activities for the development and adoption of the budget
c. Calendar period covered by the annual budget and the long-range plan
d. Sales forecasts by months in the annual budget period
e. Schedule of dates at which economic goals are to be met

3. The budget that describes the long-term position, goals, and objectives of an entity within its
environment is the
a. Capital budget d. Strategic budget
b. Operating budget e. Financial budget
c. Cash management budget

4. Which one of the following may be considered an independent item in the preparation of the master
budget?
a. Ending inventory budget c. Pro-forma income statement
b. Capital investment budget d. Pro-forma statement of financial position
e. Expense budget

5.

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