Exam 14: Standard Costs and Balanced Scorecard

The production budget shows expected unit sales of 32000.Beginning finished goods units are 3600.Required production units are 33600.What are the desired ending finished goods units?

Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.

A company has budgeted direct materials purchases of $300000 in July and $480000 in August.Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month.During August the following items were budgeted: Wages Expense \ 150,000 Purchase of office equipment 72,000 Selling and Administrative Expenses 48,000 Depreciation Expense 36,000 The budgeted cash disbursements for August are

In order to develop a budgeted balance sheet the previous year's balance sheet is needed.

An unrealistic budget is more likely to result when it

The direct materials budget is derived from the direct materials units required for production plus desired ending direct materials units less beginning direct materials units.

In service enterprises the critical factor in budgeting is coordinating materials and equipment with anticipated services.

The budget is developed within the framework of a sales forecast.

A production budget should be prepared before the sales budget.

The financial budgets include the

Haft Construction Company determines that 54000 pounds of direct materials are needed for production in July.There are 3200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2800 pounds.If the cost per unit of direct materials is $3 what is the budgeted total cost of direct materials purchases?

Budgeting is usually most closely associated with which management function?

A benefit of budgeting is that it provides definite objectives for evaluating performance.

The production budget shows expected unit sales are 100000.The required production units are 104000.What are the beginning and desired ending finished goods units respectively? a. 10,000 6,000 b. 6,000 10,000 c. 4,000 10,000 d. 10,000 4,000

If there were 60000 pounds of raw materials on hand on January 1 120000 pounds are desired for inventory at January 31 and 410000 pounds are required for January production how many pounds of raw materials should be purchased in January?

Strand Company is planning to sell 400 buckets and produce 380 buckets during March.Each bucket requires 500 grams of plastic and one-half hour of direct labor.Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour.Manufacturing overhead is applied at a rate of 110% of direct labor costs.Strand has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory.How much is the total amount of budgeted direct labor for March?

The cash budget reflects

Dolce Co.estimates its sales at 180000 units in the first quarter and that sales will increase by 18000 units each quarter over the year.They have and desire a 25% ending inventory of finished goods.Each unit sells for $25.40% of the sales are for cash.70% of the credit customers pay within the quarter.The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

Off-Line Co.has 9000 units in beginning finished goods.The sales budget shows expected sales to be 36000 units.If the production budget shows that 42000 units are required for production what was the desired ending finished goods?