Question 1

The purpose of the departmental overhead cost report is to

Accepted Answer

A)  control indirect labor costs. 
B)  control selling expense. 
C)  determine the efficient use of materials. 
D)  control overhead costs. 
A)  control indirect labor costs. 
B)  control selling expense. 
C)  determine the efficient use of materials. 
D)  control overhead costs.

Question 2

Grown Industries reported the following items for 2016: $$\begin{array} { l r } 
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 650,000
\end{array}$$ How much is controllable margin?

Accepted Answer

A)  $200000 
B)  $120000 
C)  $60000 
D)  $20000 
A)  $200000 
B)  $120000 
C)  $60000 
D)  $20000

Question 3

Clark Company's master budget reflects budgeted sales information for the month of June 2016 as follows:   During June the company actually sold 39000 units of Product A at an average unit price of $7.10 and 49600 units of Product B at an average unit price of $8.90.
Instructions
Prepare a Sales Budget Report for the month of June for Clark Company which shows whether the company achieved its planned objectives.

Accepted Answer

The answer of Clark Company's master budget reflects budgeted sales...

Question 4

A static budget is usually appropriate in evaluating a manager's effectiveness in controlling

Accepted Answer

A)  fixed manufacturing costs and fixed selling and administrative expenses. 
B)  variable manufacturing costs and variable selling and administrative expenses. 
C)  fixed manufacturing costs and variable selling and administrative expenses. 
D)  variable manufacturing costs and fixed selling and administrative expenses. 
A)  fixed manufacturing costs and fixed selling and administrative expenses. 
B)  variable manufacturing costs and variable selling and administrative expenses. 
C)  fixed manufacturing costs and variable selling and administrative expenses. 
D)  variable manufacturing costs and fixed selling and administrative expenses.

Question 5

Wind Productions uses flexible budgets. Items from the budget for March in which 3000 units were produced and sold appear below: $$\begin{array} { l r } 
\text { Direct materials } & \$ 18,000 \
\text { Indirect materials - variable } & 2,000 \
\text { Supervisor salaries } & 15,000 \
\text { Depreciation on factory equipment } & 4,000 \
\text { Direct labor } & 10,000 \
\text { Property taxes on factory } & 1,000
\end{array}$$ Instructions
If Wind prepares a flexible budget at 4000 units compute its total variable cost.

Accepted Answer

Variable cost per unit: ($1800

Question 6

Performance reports for cost centers compare actual

Accepted Answer

A)  total costs with static budget data. 
B)  total costs with flexible budget data. 
C)  controllable costs with static budget data. 
D)  controllable costs with flexible budget data. 
A)  total costs with static budget data. 
B)  total costs with flexible budget data. 
C)  controllable costs with static budget data. 
D)  controllable costs with flexible budget data.

Question 7

Under ___________________ accounting the evaluation of a manager's performance is based on the costs and revenues directly under that manager's control.

Accepted Answer

The answer of Under ___________________ accounting the evaluation of a...

Question 8

A static budget

Accepted Answer

A)  should not be prepared in a company. 
B)  is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs. 
C)  shows planned results at the original budgeted activity level. 
D)  is changed only if the actual level of activity is different than originally budgeted. 
A)  should not be prepared in a company. 
B)  is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs. 
C)  shows planned results at the original budgeted activity level. 
D)  is changed only if the actual level of activity is different than originally budgeted.

Question 9

Sales results that are evaluated by a static budget might show
1) favorable differences that are not justified.
2) unfavorable differences that are not justified.

Accepted Answer

A)  1 
B)  2 
C)  both 1 and 2. 
D)  neither 1 nor 2. 
A)  1 
B)  2 
C)  both 1 and 2. 
D)  neither 1 nor 2.

Question 10

A static budget is most useful for evaluating a manager's performance in controlling variable costs.

Accepted Answer

A) True 
 B)False

Question 11

Beal Manufacturing Co.'s static budget at 12000 units of production includes $72000 for direct labor and $12000 for direct materials. Total fixed costs are $48000.
Instructions
a. Determine how much would appear on Beal's flexible budget for 2016 if 18000 units are produced and sold.
b. How would this comparison differ if a static budget were used instead of a flexible budget for performance evaluation?

Accepted Answer

a.
  b. If a static budget were used bud

Question 12

Which of the following valuations of operating assets is not readily available from the accounting records?

Accepted Answer

A)  Cost 
B)  Book value 
C)  Market value 
D)  Both cost and market value 
A)  Cost 
B)  Book value 
C)  Market value 
D)  Both cost and market value

Question 13

A __________________ budget projects budget data for various levels of activity.

Accepted Answer

The answer of A __________________ budget projects budget data for...

The purpose of the departmental overhead cost report is to

Grown Industries reported the following items for 2016: Income tax expense \ 60,000 Contribution margin 200,000 Controllable fixed costs 80,000 Interest expense 40,000 Total operating assets 650,000 How much is controllable margin?

A static budget is usually appropriate in evaluating a manager's effectiveness in controlling

Performance reports for cost centers compare actual

Under ___________________ accounting the evaluation of a manager's performance is based on the costs and revenues directly under that manager's control.

A static budget

Sales results that are evaluated by a static budget might show 1) favorable differences that are not justified. 2) unfavorable differences that are not justified.

A static budget is most useful for evaluating a manager's performance in controlling variable costs.

Which of the following valuations of operating assets is not readily available from the accounting records?

A __________________ budget projects budget data for various levels of activity.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

Exam 24: Budgetary Control and Responsibility Accounting

The purpose of the departmental overhead cost report is to

Grown Industries reported the following items for 2016: Income tax expense \ 60,000 Contribution margin 200,000 Controllable fixed costs 80,000 Interest expense 40,000 Total operating assets 650,000 How much is controllable margin?

A static budget is usually appropriate in evaluating a manager's effectiveness in controlling

Performance reports for cost centers compare actual

Under ___________________ accounting the evaluation of a manager's performance is based on the costs and revenues directly under that manager's control.

A static budget

Sales results that are evaluated by a static budget might show 1) favorable differences that are not justified. 2) unfavorable differences that are not justified.

A static budget is most useful for evaluating a manager's performance in controlling variable costs.

Which of the following valuations of operating assets is not readily available from the accounting records?

A __________________ budget projects budget data for various levels of activity.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters