Question

16. If budgets are to be effective, there must be A) a history of successful operations. B) excess plant capacity. C) independent verification of budget goals, D) an organizational structur ganizational structure with clearly defined lines of authority and responsibility 17. If a company has both an intlo equipment, the company has both an inflow and outflow of cash related to property, plant, and A) cash inflow and cash outflow should be reported separately in the investing activities section B) two two cash effects can be netted and presented as one item in the financing activities section. C) two cash effects can be netted and presented as one item in the investing activities section. D) cash inflow and cash outflow should be reported separately in the financing activities section. 18. For a merchandiser, the starting point in the development of the master budget is the A) sales budget. B) budgeted income statement. C) selling and administrative expenses budget. D) cash budget. Use the following to answer questions 19-21: Sudler Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clav mix costs $0.50 per pound and employees of the company are paid $15.00 per hour Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sudler has 2.600 nounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory 19. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month? A) 25,520 B) 26,800 C) 25,120 D) 25.920 Version 2 Page 4

Answer 1

As per HomeworkLib honor code only one question can be asked at a time as it is not mentioned which question is to be answered so only 17th question is answered hope you understand

Answer 17: A) Cash inflows and outflows should be reported separately in the investing activities section

as

Cash inflow and cash outflow from sale or purchase of equipment property etc are part of investing activities so any inflow or outflow from these items is shown in investing activities section not in operating or financing section

ans moreover the inflows and outflows are not netted off these are shown separately