Question 1

A common type of cost centre is:

Accepted Answer

A)  Committed 
B)  Standard 
C)  Overhead 
D)  Engineered 
A)  Committed 
B)  Standard 
C)  Overhead 
D)  Engineered

Question 2

Linking rewards to budget achievement should always be avoided.

Accepted Answer

A) True 
 B)False

Question 3

The operating cycle relates to relationships between inventory, sales, accounts receivable and the collection of cash.

Accepted Answer

A) True 
 B)False

Question 4

A manufacturer using an activity based budgeting system would budget for costs attached to activities such as assembly, machine set up or painting.

Accepted Answer

A) True 
 B)False

Question 5

Changes in operating expenses are influenced primarily by:

Accepted Answer

A)  changes in revenue estimation 
B)  economic conditions 
C)  changes to product specifications 
D)  All of the above. 
A)  changes in revenue estimation 
B)  economic conditions 
C)  changes to product specifications 
D)  All of the above.

Question 6

Building slack into budgetary targets is one way to prevent dysfunctional behaviour.

Accepted Answer

A) True 
 B)False

Question 7

A key metric to evaluate the elements in the statement of financial position is return on equity.

Accepted Answer

A) True 
 B)False

Question 8

It is important that the budgeting process incorporates both financial and non-financial impacts of alternative decisions.

Accepted Answer

A) True 
 B)False

Question 9

Depending on the organisation direct labour can be categorised as:

Accepted Answer

A)  committed cost 
B)  discretionary cost 
C)  Both A and B 
D)  None of the above 
A)  committed cost 
B)  discretionary cost 
C)  Both A and B 
D)  None of the above

Question 10

Having excessive cash tied up in accounts receivable and inventory can cause organisations to experience cash flow shortages.

Accepted Answer

A) True 
 B)False

Question 11

Budgeting helps organisations make strategic decisions about resource allocations.

Accepted Answer

A) True 
 B)False

A common type of cost centre is:

Linking rewards to budget achievement should always be avoided.

The operating cycle relates to relationships between inventory, sales, accounts receivable and the collection of cash.

A manufacturer using an activity based budgeting system would budget for costs attached to activities such as assembly, machine set up or painting.

Changes in operating expenses are influenced primarily by:

Building slack into budgetary targets is one way to prevent dysfunctional behaviour.

A key metric to evaluate the elements in the statement of financial position is return on equity.

It is important that the budgeting process incorporates both financial and non-financial impacts of alternative decisions.

Depending on the organisation direct labour can be categorised as:

Having excessive cash tied up in accounts receivable and inventory can cause organisations to experience cash flow shortages.

Budgeting helps organisations make strategic decisions about resource allocations.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 5: Planning Budgeting and Behaviour

A common type of cost centre is:

Linking rewards to budget achievement should always be avoided.

The operating cycle relates to relationships between inventory, sales, accounts receivable and the collection of cash.

A manufacturer using an activity based budgeting system would budget for costs attached to activities such as assembly, machine set up or painting.

Changes in operating expenses are influenced primarily by:

Building slack into budgetary targets is one way to prevent dysfunctional behaviour.

A key metric to evaluate the elements in the statement of financial position is return on equity.

It is important that the budgeting process incorporates both financial and non-financial impacts of alternative decisions.

Depending on the organisation direct labour can be categorised as:

Having excessive cash tied up in accounts receivable and inventory can cause organisations to experience cash flow shortages.

Budgeting helps organisations make strategic decisions about resource allocations.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters