(TCO A) What is a cash budget? Describe the major sections of the cash budget

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ACCT 556 Budgeting Midterm Exam Answers

  1. (TCO A) What is a cash budget? Describe the major sections of the cash budget
  2. (TCO B) What is a fixed cost? How does a fixed cost differ from a variable cost? Give two examples of fixed costs.
  3. (TCO C) What is the sales budget? Why is it important to prepare the sales budget first?
  4. (TCO F) Describe the Delphi qualitative approach to forecasting. What is the advantage of this approach?
  5. (TCO G) What is the difference between traditional budgeting and activity-based budgeting? Which do you think is more accurate?
  6. (TCO A) What is the difference between a flexible and a static budget? Why is a flexible budget more commonly used by companies than a static budget?
  7. (TCO B) What does it mean to have goal congruence to meet corporate goals? Why is goal congruence so important?
  8. (TCO C) There are three popular methods for determining advertising dollars for a budget. Please provide an example of how ONE of these three methods could be used for a company that manufactures shoes.
  9. (TCO F) What is qualitative forecasting? When is it most useful?