The Hearty Feast restaurant has a strong reputation for its meat pies. The head chef likes to hold 5% of the following month's projected pie sales in stock. The meat pie chef is paid $15 per hour to produce a batch of 10 meat pies. Projected meat pie sales in the next two months are: \[\begin{array} { | l | c | c | } \hline & \text { August } & \text { September } \\ \hline \text { Meat pie sales } & 1,000 & 1,200 \\ \hline \end{array}\] The head chef has projected the restaurant will be holding a balance of 50 meat pies on 1st August. Required: What is the budgeted cost of labour for the meat pie chef in August?

A) $1,480 B) $1,490 C) $1,500 D) $1,515 E) None of the above A) $1,480 B) $1,490 C) $1,500 D) $1,515 E) None of the above D

The Tallebudgera Tea Rooms has a foyer shop that sells souvenir T-shirts. The shop manager likes to hold 20% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: \[\begin{array} { | l | c | c | } \hline & \text { August } & \text { September } \\ \hline \text { T-shirt sales } & 600 & 500 \\ \hline \end{array}\] The shop has projected it will be holding 120 T-shirts in stock on 1st August. Required: If the T-shirts cost $4 each, what is the cost of T-shirt purchases to be made in August?

A) $2,160 B) $2,240 C) $2,320 D) $2,440 E) None of the above A) $2,160 B) $2,240 C) $2,320 D) $2,440 E) None of the above

A hotel has a foyer shop that sells tourist clothing and souvenirs. The shop manager likes to keep 80% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: \[\begin{array} { | l | c | c | } \hline & \text { July } & \text { August } \\ \hline \text { Projected number of T-shirts to be sold } & 480 & 560 \\ \hline \end{array}\] The shop has projected it will be holding 384 T-shirts in stock on 1st July. Required: If the T-shirts cost $2.50 each, what is the cost of T-shirt purchases to be made in July?

A) $1,200. B) $1,400. C) $240. D) $544. E) $1,360. A) $1,200. B) $1,400. C) $240. D) $544. E) $1,360.

The Honeymoon Hotel has a foyer shop that sells souvenir T-shirts. The shop manager likes to hold 40% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: \[\begin{array} { | l | c | c | } \hline & \text { August } & \text { September } \\ \hline \text { T-shirt sales } & 500 & 400 \\ \hline \end{array}\] The shop has projected it will be holding 200 T-shirts in stock on 1st August. Required: If the T-shirts cost $5 each, what is the cost of T-shirt purchases to be made in August?

A) $2,000 B) $2,100 C) $2,300 D) $2,500 E) None of the above A) $2,000 B) $2,100 C) $2,300 D) $2,500 E) None of the above

Exam 9: Budgeting and Responsibility Accounting

The Hearty Feast restaurant has a strong reputation for its meat pies. The head chef likes to hold 5% of the following month's projected pie sales in stock. The meat pie chef is paid $15 per hour to produce a batch of 10 meat pies. Projected meat pie sales in the next two months are: August September Meat pie sales 1,000 1,200 The head chef has projected the restaurant will be holding a balance of 50 meat pies on 1^st August. Required: What is the budgeted cost of labour for the meat pie chef in August?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Which of the following statements is incorrect? Responsibility accounting involves:

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

Which of the following statements is not true.

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

Residual income is calculated as:

(Multiple Choice)

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Question 4

A kitchen uses half a kilogram of meat to make a meat pie. It has been estimated that 800 pies will be made in July and 900 pies will be made in August. The chef likes to hold the kitchen's meat inventory at 10% of the following month's needs. If the 30 June inventory of meat is 40 kilograms, how many kilograms of meat should be purchased during July?

(Multiple Choice)

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Question 5

In a kitchen that produces and sells meat pies, what is the right sequence in which to prepare the following three budgets: 1) budgeted meat pie ingredient purchases; 2) budgeted meat pie production; and 3) budgeted meat pie sales?

(Multiple Choice)

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Question 6

Which of the following statements is not true?

(Multiple Choice)

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Question 7

Which of the following statements is true?

(Multiple Choice)

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Question 8

Suppose that a department manager deliberately underestimates next year's revenue for his department by $24,000. This is an example of:

(Multiple Choice)

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Question 9

The head of a profit centre is held accountable for which of the following?

(Multiple Choice)

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Question 10

In the last financial year a company made a profit of $100,000 on sales of $1,250,000. It has assets of $800,000 and a required rate of return 9%. What was the company's residual income in the last financial year?

(Multiple Choice)

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Question 11

The Tallebudgera Tea Rooms has a foyer shop that sells souvenir T-shirts. The shop manager likes to hold 20% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: August September T-shirt sales 600 500 The shop has projected it will be holding 120 T-shirts in stock on 1^st August. Required: If the T-shirts cost $4 each, what is the cost of T-shirt purchases to be made in August?

(Multiple Choice)

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Question 12

In the last financial year a company made a profit of $80,000 on sales of $1,600,000. It has assets of $400,000 and a required rate of return 8%. It earns 3% on its business bank account. The company's residual income is:

(Multiple Choice)

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Question 13

A hotel has a foyer shop that sells tourist clothing and souvenirs. The shop manager likes to keep 80% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: July August Projected number of T-shirts to be sold 480 560 The shop has projected it will be holding 384 T-shirts in stock on 1^st July. Required: If the T-shirts cost $2.50 each, what is the cost of T-shirt purchases to be made in July?

(Multiple Choice)

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Question 14

Which of the following statements is not true?

(Multiple Choice)

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Question 15

At the Fawlty Towers Hotel, it takes the Housekeeping Manager 2 hours to supervise 4 Room Maids' cleaning of 20 rooms. The Housekeeping manager is paid $25 per hour and the Room Maids are paid $16 per hour. What will be the total labour cost to clean all of the hotel's 32 rooms?

(Multiple Choice)

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Question 16

Which of the following statements is untrue?

(Multiple Choice)

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Question 17

The Honeymoon Hotel has a foyer shop that sells souvenir T-shirts. The shop manager likes to hold 40% of the following month's projected T-shirt sales in stock. Projected T-shirt sales in the next two months are: August September T-shirt sales 500 400 The shop has projected it will be holding 200 T-shirts in stock on 1^st August. Required: If the T-shirts cost $5 each, what is the cost of T-shirt purchases to be made in August?

(Multiple Choice)

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Question 18

Which of the following is not a role of the budget?

(Multiple Choice)

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Question 19

The Majestic Restaurant has provided you with the following data for its last financial year: $\bullet$ Contribution margin: $400,000 $\bullet$ Fixed costs: $80,000 $\bullet$ Assets $900,000 Majestic's head office requires a 10% rate of return on assets. What was Majestic Restaurant's residual income in the last financial year?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 28

Which of the following statements is incorrect? Responsibility accounting involves:

Which of the following statements is not true.

Residual income is calculated as:

In a kitchen that produces and sells meat pies, what is the right sequence in which to prepare the following three budgets: 1) budgeted meat pie ingredient purchases; 2) budgeted meat pie production; and 3) budgeted meat pie sales?

Which of the following statements is not true?

Which of the following statements is true?

Suppose that a department manager deliberately underestimates next year's revenue for his department by $24,000. This is an example of:

The head of a profit centre is held accountable for which of the following?

In the last financial year a company made a profit of $100,000 on sales of $1,250,000. It has assets of $800,000 and a required rate of return 9%. What was the company's residual income in the last financial year?

In the last financial year a company made a profit of $80,000 on sales of $1,600,000. It has assets of $400,000 and a required rate of return 8%. It earns 3% on its business bank account. The company's residual income is:

Which of the following statements is not true?

At the Fawlty Towers Hotel, it takes the Housekeeping Manager 2 hours to supervise 4 Room Maids' cleaning of 20 rooms. The Housekeeping manager is paid $25 per hour and the Room Maids are paid $16 per hour. What will be the total labour cost to clean all of the hotel's 32 rooms?

Which of the following statements is untrue?

Which of the following is not a role of the budget?

Introduction: Hospitality Decision Makers Use of Accounting

Analysing Transactions and Preparing Year End Financial Statements

Double Entry Accounting

Adjusting and Closing Entries

Financial Statement Analysis

Internal Control

Cost Management Issues

Cost-Volume-Profit Analysis

Flexible Budgeting and Variance Analysis

Performance Measurement

Cost Information and Pricing

Working Capital Management

Investment Decision Making

Other Managerial Finance Issues

Revenue Management

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