Q2TI - Horngren'S Financial And Managerial Accounting

Question

Match the budget types to the definitions. 

 

Budget Types Definitions 

5. Financial a. Includes sales, production, and cost of goods sold budgets 

6. Flexible b. Long-term budgets 

7. Operating c. Includes only one level of sales volume 

8. Operational d. Includes various levels of sales volumes 

9. Static e. Short-term budgets 

10. Strategic f. Includes the budgeted financial statements

Step-by-Step Solution

Answer

1. f. 
2. d.
3. a.
4. e.
5. c.
6. b.

Step 1: Meaning of Budget

 

A budget is a financial plan prepared by the managers to achieve the organization’s goals and objectives.

Step 2: Matching budget types to the definitions

Type of Budget	Definitions
5. Financial	f. Includes the budgeted financial statements
6. Flexible	d. Includes various levels of sales volumes
7. Operating	a. Includes sales, production, and cost of goods sold budgets
8. Operational	e. Short-term budgets
9. Static	c. Includes only one level of sales volume
10.Strategic	b. Long-term budgets