1. The master budget consists of a number of separate but interdependent budgets.
A. True
B. False
2. The usual start point for a master budget is
A. the direct materials purchase budget
B. the budgeted income statement
C. the sales forecast or sales budget
D. the production budget
3. The production budget is typically prepared before the direct materials budget.
A. True
B. False
4. Which of the following BEST describes the production budget?
A. It details the required direct labor hours.
B. It details the required raw materials purchases.
C. It is calculated based on the sales budget and the desired ending inventory.
D. It summarizes the costs of producing units for the budget period.