Which of the following statements are true regarding self-imposed budgets. (select all that apply)

Which of the descriptions below best defines “stapled financing?”

Forward integration can best be described by:

ACG Inc. has budgeted the following sales for the next six months of 2025. April May June July August September Sales (units) 2,300 3,100 2,700 2,900 2,800 2,400 The company wants its ending inventory levels to be equal to 5% of the following month’s unit sales. The inventory at the end of March was 115 units. What is the required production for May?

Questions 19 through 24 are based on the following information: ABC Co. makes widgets.  The company uses standard costing with the following standards per widget: Materials: 8 kilograms per unit at $0.80 (80 cents) per kilogram Labor: 1.5 hours per unit at $20 per hour  During the month of September, the company produced and sold 1,000 units. 9,000 kilograms of materials were purchased and used in production.  The total cost of the materials was $6,750.  Labor costs were $33,600 and represented payment for 1,600 hours worked.      The labor efficiency variance is:

ACG Inc. has budgeted the following sales for the next six months of 2025. April May June July August September Sales (units) 2,300 3,100 2,700 2,900 2,800 2,400 The company wants its ending inventory levels to be equal to 5% of the following month’s unit sales. The inventory at the end of March was 115 units. What is the required production for June?

XYZ Co. manufactures blankets for horses. Each blanket requires 8 yards of cloth. Each blanket requires 1.0 hours of direct labor, and the average hourly cost of direct labor is $22. October November December Budgeted sales (in units) 2,000 2,500 4,000 Budgeted production (in units) 2,200 2,750 4,400 What is the budgeted cost of XYZ’s direct labor for November?

XYZ Co. manufactures blankets for horses. Each blanket requires 8 yards of cloth. Each blanket requires 1.0 hours of direct labor, and the average hourly cost of direct labor is $22. October November December Budgeted sales (in units) 2,000 2,500 4,000 Budgeted production (in units) 2,200 2,750 4,400 What is the budgeted cost of XYZ’s direct labor for December?

A public acquisition can be structured as a “two-step” tender offer on either a negotiated or unsolicited basis, followed by a merger.  In step 1 of the two-step process, the tender offer is made directly to the target’s public shareholders with the target’s approval pursuant to a definitive agreement.  What percent of tendered shares does the acquirer generally need to reach in order to execute a squeeze-out scenario?  

ABC Company has budgeted the following sales for the next six months of 2025. April May June July August September Budgeted sales $324,000 $396,000 $450,000 $540,000 $468,000 $414,000 The company expects 80% of a month’s sales to be collected in the month of sales, and the remaining 20% to be collected in the month following the sale. March sales totaled $300,000. What are the expected cash collections during the month of August?