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56 activity based budgeting includes all the following steps except a determining de 4300307


56) Activity-based budgeting includes all the following steps EXCEPT:

A) determining demands for activities from sales and production targets

B) computing the cost of performing activities

C) determining a separate cost-driver rate for each department

D) describing the budget as costs of activities rather than costs of functions


57) A rolling budget is the same as a continuous budget.


58) The cash budget and the budgeted income statement are necessary to prepare the budgeted balance sheet and budgeted statement of cash flows.


59) Preparation of the budgeted statement of cash flows is the final step in preparing the operating budget.


60) The sales forecast should primarily be based on statistical analysis with secondary input from sales managers and sales representatives.

61) The usual starting point in budgeting is to forecast net income.


62) The revenues budget should be based on the production budget.


63) The financial budget is that part of the master budget that includes the capital expenditures budget, cash budget, budgeted balance sheet, and the budgeted statement of cash flows.


64) Since fixed manufacturing overhead is fixed, it is NOT normally included in the operating budget.


65) The manufacturing labor budget depends on wage rates, production methods, and hiring plans.



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