Question 1

Cash budgets are often prepared monthly or even weekly.

Accepted Answer

A) True 
 B)False

Question 2

_____________________ allows subordinate managers considerable say in how the budgets are established.

Accepted Answer

Participat

Question 3

The direct labor budget includes: units to be produced,direct labor time needed per unit,and total direct labor cost for the period.

Accepted Answer

A) True 
 B)False

Question 4

In preparing the direct labor budget,the average wage rate is used to calculate total direct labor cost.

Accepted Answer

A) True 
 B)False

Question 5

Examples of ________________ include job enrichment,increased responsibility and autonomy,and recognition programs.

Accepted Answer

nonmonetar

Question 6

Figure 9-8. Cohlmia Company makes all its sales on account.Cohlmia's accounts receivable payment experience is as follows:
  Cohlmia provided information on sales as follows:
  Refer to Figure 9-8.What are the expected cash receipts in the month of November?

Accepted Answer

A) $200,000 
B) $40,000 
C) $190,000 
D) $132,000 
E) $114,000 
A) $200,000 
B) $40,000 
C) $190,000 
D) $132,000 
E) $114,000

Question 7

Budgets identify objectives and the actions needed to achieve them because they are foresighted financial plans.

Accepted Answer

A) True 
 B)False

Question 8

Bright Lamp Company manufactures lamps.The estimated number of lamp sales for the last three months of 2011 are as follows:   Finished goods inventory at the end of September was 3,000 units.Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales.Bright Lamp expects to sell the lamps for $25 each.January 2012 sales are projected at 16,000 lamps.How many lamps should be produced in November?

Accepted Answer

A) 11,000 lamps 
B) 10,500 lamps 
C) 14,000 lamps 
D) 13,750 lamps 
A) 11,000 lamps 
B) 10,500 lamps 
C) 14,000 lamps 
D) 13,750 lamps

Question 9

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Accepted Answer

A) True 
 B)False

Question 10

Salaries expense,advertising expense and depreciation expense would be included in the ______________________ budget.

Accepted Answer

selling an

Question 11

Candace Company produces and sells pillows.It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011.Candace would like to complete operations in the year 2012 with at least 1,250 completed pillows in inventory.There is no ending work-in-process inventory.The pillows sell for $5 each.How many pillows would be produced in the year 2012?

Accepted Answer

A) 10,000 pillows 
B) 11,000 pillows 
C) 11,250 pillows 
D) 10,250 pillows 
A) 10,000 pillows 
B) 11,000 pillows 
C) 11,250 pillows 
D) 10,250 pillows

Question 12

Which of the following is an operating budget?

Accepted Answer

A) Budgeted statement of cash flows 
B) Capital expenditures budget 
C) Budgeted income statement 
D) Cash budget 
A) Budgeted statement of cash flows 
B) Capital expenditures budget 
C) Budgeted income statement 
D) Cash budget

Question 13

Briefly describe the attributes of an ideal budgetary system.What features of budgeting have been identified that encourage positive behavior?

Accepted Answer

An ideal budgetary system is one that ac

Question 14

Budgeted operating income includes

Accepted Answer

A) budgeted interest expense. 
B) budgeted income taxes. 
C) budgeted cost of goods sold. 
D) budgeted net income. 
E) none of these. 
A) budgeted interest expense. 
B) budgeted income taxes. 
C) budgeted cost of goods sold. 
D) budgeted net income. 
E) none of these.

Question 15

Control is achieved by comparing actual results with budgeted results on a periodic basis.

Accepted Answer

A) True 
 B)False

Question 16

The following forecasted sales pertain to Micah Company:   Collection pattern:
60% in month of sale
40% in month following the sale
  The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales.How many units are expected to be produced in April?

Accepted Answer

A) 21,000 units 
B) 19,000 units 
C) 25,000 units 
D) 20,000 units 
A) 21,000 units 
B) 19,000 units 
C) 25,000 units 
D) 20,000 units

Question 17

In budgeting direct labor hours for the coming year,it is important to

Accepted Answer

A) multiply production in units by the direct labor hours per unit. 
B) divide production in units by the direct labor hours per unit. 
C) subtract production in units from the direct labor hours per unit. 
D) subtract direct labor hours per unit from production in units. 
E) multiply production in units by the labor wage rate. 
A) multiply production in units by the direct labor hours per unit. 
B) divide production in units by the direct labor hours per unit. 
C) subtract production in units from the direct labor hours per unit. 
D) subtract direct labor hours per unit from production in units. 
E) multiply production in units by the labor wage rate.

Question 18

Which of the following is an example of myopic behavior?

Accepted Answer

A) Promotion of deserving employees. 
B) Reducing expenditures on preventive maintenance. 
C) Increased spending on research and development. 
D) Productivity training for new employees. 
E) Buying cheaper materials of the same quality to decrease the amount spent on raw materials. 
A) Promotion of deserving employees. 
B) Reducing expenditures on preventive maintenance. 
C) Increased spending on research and development. 
D) Productivity training for new employees. 
E) Buying cheaper materials of the same quality to decrease the amount spent on raw materials.

Question 19

The cash budget and budgeted balance sheet are part of the ________________.

Accepted Answer

The answer of The cash budget and budgeted balance sheet...

Question 20

In going from the sales budget to the production budget,adjustments to the sales budget need to be made for

Accepted Answer

A) finished goods inventories. 
B) cash receipts. 
C) factory overhead costs. 
D) selling expenses. 
A) finished goods inventories. 
B) cash receipts. 
C) factory overhead costs. 
D) selling expenses.

Cash budgets are often prepared monthly or even weekly.

_____________________ allows subordinate managers considerable say in how the budgets are established.

The direct labor budget includes: units to be produced,direct labor time needed per unit,and total direct labor cost for the period.

In preparing the direct labor budget,the average wage rate is used to calculate total direct labor cost.

Examples of ________________ include job enrichment,increased responsibility and autonomy,and recognition programs.

Figure 9-8. Cohlmia Company makes all its sales on account.Cohlmia's accounts receivable payment experience is as follows: Cohlmia provided information on sales as follows: Refer to Figure 9-8.What are the expected cash receipts in the month of November?

Budgets identify objectives and the actions needed to achieve them because they are foresighted financial plans.

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Salaries expense,advertising expense and depreciation expense would be included in the ______________________ budget.

Which of the following is an operating budget?

Briefly describe the attributes of an ideal budgetary system.What features of budgeting have been identified that encourage positive behavior?

Budgeted operating income includes

Control is achieved by comparing actual results with budgeted results on a periodic basis.

In budgeting direct labor hours for the coming year,it is important to

Which of the following is an example of myopic behavior?

The cash budget and budgeted balance sheet are part of the ________________.

In going from the sales budget to the production budget,adjustments to the sales budget need to be made for

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 9: Profit Planning

Cash budgets are often prepared monthly or even weekly.

_____________________ allows subordinate managers considerable say in how the budgets are established.

The direct labor budget includes: units to be produced,direct labor time needed per unit,and total direct labor cost for the period.

In preparing the direct labor budget,the average wage rate is used to calculate total direct labor cost.

Examples of ________________ include job enrichment,increased responsibility and autonomy,and recognition programs.

Figure 9-8. Cohlmia Company makes all its sales on account.Cohlmia's accounts receivable payment experience is as follows: Cohlmia provided information on sales as follows: Refer to Figure 9-8.What are the expected cash receipts in the month of November?

Budgets identify objectives and the actions needed to achieve them because they are foresighted financial plans.

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Salaries expense,advertising expense and depreciation expense would be included in the ______________________ budget.

Which of the following is an operating budget?

Briefly describe the attributes of an ideal budgetary system.What features of budgeting have been identified that encourage positive behavior?

Budgeted operating income includes

Control is achieved by comparing actual results with budgeted results on a periodic basis.

In budgeting direct labor hours for the coming year,it is important to

Which of the following is an example of myopic behavior?

The cash budget and budgeted balance sheet are part of the ________________.

In going from the sales budget to the production budget,adjustments to the sales budget need to be made for

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters