Question 1

Which of the following is not one of the positive attributes of responsibility accounting?

Accepted Answer

A)  Managers should understand the source of significant variances to budget and should be prepared to explain the reasons for discrepancies to senior management. 
B)  By assigning responsibilities for each cost,better cost control should result. 
C)  Senior management can more easily identify employees to blame. 
D)  Managers should take the initiative to correct unfavourable discrepancies. 
A)  Managers should understand the source of significant variances to budget and should be prepared to explain the reasons for discrepancies to senior management. 
B)  By assigning responsibilities for each cost,better cost control should result. 
C)  Senior management can more easily identify employees to blame. 
D)  Managers should take the initiative to correct unfavourable discrepancies.

Question 2

The accounts receivable balance that would appear in the March 31 budgeted balance sheet would be:

Accepted Answer

A)  $8,800. 
B)  $12,400. 
C)  $15,000. 
D)  $16,000. 
A)  $8,800. 
B)  $12,400. 
C)  $15,000. 
D)  $16,000.

Question 3

The total cash collected by LaGrange Company during January would be:

Accepted Answer

A)  $254,000. 
B)  $331,500. 
C)  $344,000. 
D)  $410,000. 
A)  $254,000. 
B)  $331,500. 
C)  $344,000. 
D)  $410,000.

Question 4

Montero Corporation,a merchandising company,has provided the following budget data:

Accepted Answer

@#IMG-DLM& 
Collections from customers are normall

Question 5

Determine the amount for cost of goods sold that will appear on Cummings Corporation's pro forma income statement for the month of February.

Accepted Answer

$1,300,000

Question 6

The budgeted cash receipts for October are:

Accepted Answer

A)  $188,000. 
B)  $226,000. 
C)  $248,000. 
D)  $278,000. 
A)  $188,000. 
B)  $226,000. 
C)  $248,000. 
D)  $278,000.

Question 7

The desired ending inventory in units for December is:

Accepted Answer

A)  690. 
B)  780. 
C)  870. 
D)  960. 
A)  690. 
B)  780. 
C)  870. 
D)  960.

Question 8

The expected cash disbursements during April for inventory purchases would be:

Accepted Answer

A)  $87,300. 
B)  $90,000. 
C)  $97,000. 
D)  $100,000. 
A)  $87,300. 
B)  $90,000. 
C)  $97,000. 
D)  $100,000.

Question 9

The budgeted direct labour cost per unit of Product T would be:

Accepted Answer

A)  $7.00. 
B)  $9.10. 
C)  $10.40. 
D)  $11.83. 
A)  $7.00. 
B)  $9.10. 
C)  $10.40. 
D)  $11.83.

Question 10

The opening inventory in units for April is:

Accepted Answer

A)  380. 
B)  460. 
C)  720. 
D)  4,600. 
A)  380. 
B)  460. 
C)  720. 
D)  4,600.

Question 11

In a budget of cash disbursements for March,the total cash disbursements would be:

Accepted Answer

A)  $11,200. 
B)  $13,900. 
C)  $16,900. 
D)  $22,300. 
A)  $11,200. 
B)  $13,900. 
C)  $16,900. 
D)  $22,300.

Question 12

Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:   Two kilograms of raw materials are required to produce one unit of product.The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs.The company is expected to have 36,000 kilograms of raw materials on hand on January 1.Budgeted production in units for February will be?

Accepted Answer

A)  75,000. 
B)  82,500. 
C)  105,000. 
D)  150,000. 
A)  75,000. 
B)  82,500. 
C)  105,000. 
D)  150,000.

Question 13

The direct materials to be purchased for a period can be obtained by subtracting the desired ending inventory of direct materials from the total direct materials needed for the period.

Accepted Answer

A) True 
 B)False

Question 14

What is the budgeted accounts receivable balance on June 1 of the current year:

Accepted Answer

A)  $56,000. 
B)  $64,000. 
C)  $76,000. 
D)  $132,000. 
A)  $56,000. 
B)  $64,000. 
C)  $76,000. 
D)  $132,000.

Question 15

The borrowing required during the first quarter to meet the minimum cash balance (item b in thousands)is:

Accepted Answer

A)  $0. 
B)  $3. 
C)  $7. 
D)  $10. 
A)  $0. 
B)  $3. 
C)  $7. 
D)  $10.

Question 16

The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be:

Accepted Answer

A)  $40,000. 
B)  $41,000. 
C)  $42,500. 
D)  $43,500. 
A)  $40,000. 
B)  $41,000. 
C)  $42,500. 
D)  $43,500.

Question 17

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.During April the company will need to borrow:

Accepted Answer

A)  $2,000. 
B)  $4,000. 
C)  $6,000. 
D)  $8,000. 
A)  $2,000. 
B)  $4,000. 
C)  $6,000. 
D)  $8,000.

Question 18

A self-imposed budget can be a very effective device to control and evaluate a manager's performance in an organization.

Accepted Answer

A) True 
 B)False

Question 19

Tilson Company has projected sales and production in units for the second quarter of the coming year as follows:

Accepted Answer

@#IMG-DLM& 
Cash-related production costs are budg

Question 20

What is the total cash disbursements for manufacturing overhead budgeted for quarter 2?

Accepted Answer

A)  $32,000. 
B)  $53,000. 
C)  $58,000. 
D)  $66,000. 
A)  $32,000. 
B)  $53,000. 
C)  $58,000. 
D)  $66,000.

Which of the following is not one of the positive attributes of responsibility accounting?

The accounts receivable balance that would appear in the March 31 budgeted balance sheet would be:

The total cash collected by LaGrange Company during January would be:

Montero Corporation,a merchandising company,has provided the following budget data:

Determine the amount for cost of goods sold that will appear on Cummings Corporation's pro forma income statement for the month of February.

The budgeted cash receipts for October are:

The desired ending inventory in units for December is:

The expected cash disbursements during April for inventory purchases would be:

The budgeted direct labour cost per unit of Product T would be:

The opening inventory in units for April is:

In a budget of cash disbursements for March,the total cash disbursements would be:

The direct materials to be purchased for a period can be obtained by subtracting the desired ending inventory of direct materials from the total direct materials needed for the period.

What is the budgeted accounts receivable balance on June 1 of the current year:

The borrowing required during the first quarter to meet the minimum cash balance (item b in thousands)is:

The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be:

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.During April the company will need to borrow:

A self-imposed budget can be a very effective device to control and evaluate a manager's performance in an organization.

Tilson Company has projected sales and production in units for the second quarter of the coming year as follows:

What is the total cash disbursements for manufacturing overhead budgeted for quarter 2?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 7: Profit Planning

Which of the following is not one of the positive attributes of responsibility accounting?

The accounts receivable balance that would appear in the March 31 budgeted balance sheet would be:

The total cash collected by LaGrange Company during January would be:

Montero Corporation,a merchandising company,has provided the following budget data:

Determine the amount for cost of goods sold that will appear on Cummings Corporation's pro forma income statement for the month of February.

The budgeted cash receipts for October are:

The desired ending inventory in units for December is:

The expected cash disbursements during April for inventory purchases would be:

The budgeted direct labour cost per unit of Product T would be:

The opening inventory in units for April is:

In a budget of cash disbursements for March,the total cash disbursements would be:

The direct materials to be purchased for a period can be obtained by subtracting the desired ending inventory of direct materials from the total direct materials needed for the period.

What is the budgeted accounts receivable balance on June 1 of the current year:

The borrowing required during the first quarter to meet the minimum cash balance (item b in thousands)is:

The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be:

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.During April the company will need to borrow:

A self-imposed budget can be a very effective device to control and evaluate a manager's performance in an organization.

Tilson Company has projected sales and production in units for the second quarter of the coming year as follows:

What is the total cash disbursements for manufacturing overhead budgeted for quarter 2?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters