Question 1

The comprehensive set of budgets that serves as a company's overall financial plan is commonly known as the financial budget.

Accepted Answer

A) True 
 B)False

Question 2

FastTec sells electronics in retail outlets and on the Internet.It uses activity-based budgeting in the preparation of its selling,general,and administrative expense budget.Which of the following costs would the company likely classify as a unit-level expense on its budget?

Accepted Answer

A) Media advertising. 
B) Retail outlet sales commissions. 
C) Salaries of web-site maintenance personnel. 
D) Administrative salaries. 
E) Salary of the sales manager employed at store no.23. 
A) Media advertising. 
B) Retail outlet sales commissions. 
C) Salaries of web-site maintenance personnel. 
D) Administrative salaries. 
E) Salary of the sales manager employed at store no.23.

Question 3

Millage Manufacturing has a cash balance of $8,000 on August 1 of the current year.The company's controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity:
A.Determine the ending cash balance in August both before and after any necessary financing or debt retirement.
B.Repeat part "A" for September.

Accepted Answer

@#IMG-DLM& 
Management desires to maintain a minim

Question 4

To derive the raw material to purchase during an accounting period,an accountant would calculate the raw material required for production and then:

Accepted Answer

A) add the beginning raw-material inventory and the desired ending raw-material inventory. 
B) subtract the beginning raw-material inventory and the desired ending raw-material inventory. 
C) add the beginning raw-material inventory and subtract the desired ending raw-material inventory. 
D) add the desired ending raw-material inventory and subtract the beginning raw-material inventory. 
E) add the desired ending raw-material inventory and subtract both the beginning raw-material inventory and the expected units to be sold. 
A) add the beginning raw-material inventory and the desired ending raw-material inventory. 
B) subtract the beginning raw-material inventory and the desired ending raw-material inventory. 
C) add the beginning raw-material inventory and subtract the desired ending raw-material inventory. 
D) add the desired ending raw-material inventory and subtract the beginning raw-material inventory. 
E) add the desired ending raw-material inventory and subtract both the beginning raw-material inventory and the expected units to be sold.

Question 5

Consider the following statements about budgetary slack:
I.Managers build slack into a budget so that they stand a greater chance of receiving favorable performance evaluations.
II.Budgetary slack is used by managers to guard against uncertainty and unforeseen events.
III.Budgetary slack is used by managers to guard against dollar cuts by top management in the resource allocation process.
Which of the above statements is (are)true?

Accepted Answer

A) I only. 
B) II only. 
C) I and II. 
D) II and III. 
E) I,II,and III. 
A) I only. 
B) II only. 
C) I and II. 
D) II and III. 
E) I,II,and III.

Question 6

When an organization involves its many employees in the budgeting process in a meaningful way,the organization is said to be using an approach most commonly known as:

Accepted Answer

A) budgetary slack. 
B) participative budgeting. 
C) budget padding. 
D) imposed budgeting. 
E) employee-based budgeting. 
A) budgetary slack. 
B) participative budgeting. 
C) budget padding. 
D) imposed budgeting. 
E) employee-based budgeting.

Question 7

Quattro began operations in April of this year.It makes all sales on account,subject to the following collection pattern: 30% are collected in the month of sale;60% are collected in the first month after sale;and 10% are collected in the second month after sale.If sales for April,May,and June were $60,000,$80,000,and $70,000,respectively,what were the firm's budgeted collections for April?

Accepted Answer

A) $18,000. 
B) $21,000. 
C) $60,000. 
D) $65,000. 
E) Some other amount. 
A) $18,000. 
B) $21,000. 
C) $60,000. 
D) $65,000. 
E) Some other amount.

Question 8

An examination of Shorter Corporation's inventory accounts revealed the following information:
Raw materials,June 1: 46,000 units
Raw materials,June 30: 51,000 units
Purchases of raw materials during June: 185,000 units
Shorter's finished product requires four units of raw materials.On the basis of this information,how many finished products were manufactured during June?

Accepted Answer

A) 45,000. 
B) 47,500. 
C) 57,750. 
D) 70,500. 
E) Some other amount. 
A) 45,000. 
B) 47,500. 
C) 57,750. 
D) 70,500. 
E) Some other amount.

Question 9

Wilmar Corporation is budgeting its equipment needs on an on-going basis,with a new quarter being added to the budget as the current quarter is completed.This type of budget is most commonly known as a:

Accepted Answer

A) capital budget. 
B) rolling budget. 
C) revised budget. 
D) pro-forma budget. 
E) financial budget. 
A) capital budget. 
B) rolling budget. 
C) revised budget. 
D) pro-forma budget. 
E) financial budget.

Question 10

Which of the following organizations is not likely to use budgets?

Accepted Answer

A) Manufacturing firms. 
B) Merchandising firms. 
C) Firms in service industries. 
D) Nonprofit organizations. 
E) None of these,because all are likely to use budgets. 
A) Manufacturing firms. 
B) Merchandising firms. 
C) Firms in service industries. 
D) Nonprofit organizations. 
E) None of these,because all are likely to use budgets.

Question 11

A company's sales forecast would likely consider all of the following factors except:

Accepted Answer

A) past sales levels and trends. 
B) the company's intended pricing policy. 
C) the company's product costing policy. 
D) market research studies. 
E) planned advertising and promotions. 
A) past sales levels and trends. 
B) the company's intended pricing policy. 
C) the company's product costing policy. 
D) market research studies. 
E) planned advertising and promotions.

Question 12

What is Swamp Fox's estimated sales in units for next year?

Accepted Answer

A) 41,485 pairs. 
B) 38,300 pairs. 
C) 40,000 pairs. 
D) 40,685 pairs. 
E) Some other amount. 
A) 41,485 pairs. 
B) 38,300 pairs. 
C) 40,000 pairs. 
D) 40,685 pairs. 
E) Some other amount.

Question 13

Which of the following budgets is based on many other master-budget components?

Accepted Answer

A) Direct labor budget. 
B) Overhead budget. 
C) Sales budget. 
D) Cash budget. 
E) Selling and administrative expense budget. 
A) Direct labor budget. 
B) Overhead budget. 
C) Sales budget. 
D) Cash budget. 
E) Selling and administrative expense budget.

Question 14

Quattro began operations in April of this year.It makes all sales on account,subject to the following collection pattern: 30% are collected in the month of sale;60% are collected in the first month after sale;and 10% are collected in the second month after sale.If sales for April,May,and June were $60,000,$80,000,and $70,000,respectively,what were the firm's budgeted collections for June?

Accepted Answer

A) $21,000. 
B) $60,000. 
C) $69,000. 
D) $75,000. 
E) Some other amount. 
A) $21,000. 
B) $60,000. 
C) $69,000. 
D) $75,000. 
E) Some other amount.

Question 15

James Corporation,headquartered in Chicago,has a manufacturing plant in Dallas.Plant managers desire to participate in the company's budget efforts,which,for the past 10 years,have been handled solely by top executives in Chicago.Dallas managers feel that by becoming involved,they can make great strides in terms of improving operating performance of their aging facility.
Required:
Briefly discuss this situation,focusing on the benefits and problems of letting Dallas managers participate in the company's budgetary efforts.

Accepted Answer

Participative budgets will make the plan

Question 16

The master budget contains the following components,among others: (1)direct-material budget,(2)budgeted balance sheet,(3)production budget,and (4)cash budget.Which of these components would be prepared first and which would be prepared last?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 17

Which of the following outcomes is (are)sometimes associated with participative budgeting?

Accepted Answer

A) Employees make little effort to achieve budgetary goals. 
B) Budget preparation time can be somewhat lengthy. 
C) The problem of budget padding may arise. 
D) Financial modeling becomes much more difficult to undertake. 
E) Both choices B and C are correct. 
A) Employees make little effort to achieve budgetary goals. 
B) Budget preparation time can be somewhat lengthy. 
C) The problem of budget padding may arise. 
D) Financial modeling becomes much more difficult to undertake. 
E) Both choices B and C are correct.

Question 18

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:  
In addition,Northcutt produces 5,000 units a month of its standard product.It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit.Northwest's cost per labor hour is $15.Direct labor cost for July would be budgeted at:

Accepted Answer

A) $183,750. 
B) $187,125. 
C) $189,125. 
D) $194,750. 
E) Some other amount. 
A) $183,750. 
B) $187,125. 
C) $189,125. 
D) $194,750. 
E) Some other amount.

Question 19

Tidewater plans to sell 85,000 units of product no.794 in May,and each of these units requires three units of raw material.Pertinent data follow.  
On the basis of the information presented,how many units of raw material should Tidewater purchase for use in May production?

Accepted Answer

A) 228,000. 
B) 246,000. 
C) 264,000. 
D) 282,000. 
E) Some other amount. 
A) 228,000. 
B) 246,000. 
C) 264,000. 
D) 282,000. 
E) Some other amount.

Question 20

The budgeted income statement,budgeted balance sheet,and budgeted statement of cash flows comprise:

Accepted Answer

A) the final portion of the master budget. 
B) the depiction of an organization's overall actual financial results. 
C) the first step of the master budget. 
D) the portion of the master budget prepared after the sales forecast and before the remainder of the operational budgets. 
E) the second step of the master budget. 
A) the final portion of the master budget. 
B) the depiction of an organization's overall actual financial results. 
C) the first step of the master budget. 
D) the portion of the master budget prepared after the sales forecast and before the remainder of the operational budgets. 
E) the second step of the master budget.

The comprehensive set of budgets that serves as a company's overall financial plan is commonly known as the financial budget.

FastTec sells electronics in retail outlets and on the Internet.It uses activity-based budgeting in the preparation of its selling,general,and administrative expense budget.Which of the following costs would the company likely classify as a unit-level expense on its budget?

To derive the raw material to purchase during an accounting period,an accountant would calculate the raw material required for production and then:

When an organization involves its many employees in the budgeting process in a meaningful way,the organization is said to be using an approach most commonly known as:

Wilmar Corporation is budgeting its equipment needs on an on-going basis,with a new quarter being added to the budget as the current quarter is completed.This type of budget is most commonly known as a:

Which of the following organizations is not likely to use budgets?

A company's sales forecast would likely consider all of the following factors except:

What is Swamp Fox's estimated sales in units for next year?

Which of the following budgets is based on many other master-budget components?

The master budget contains the following components,among others: (1)direct-material budget,(2)budgeted balance sheet,(3)production budget,and (4)cash budget.Which of these components would be prepared first and which would be prepared last?

Which of the following outcomes is (are)sometimes associated with participative budgeting?

Tidewater plans to sell 85,000 units of product no.794 in May,and each of these units requires three units of raw material.Pertinent data follow. On the basis of the information presented,how many units of raw material should Tidewater purchase for use in May production?

The budgeted income statement,budgeted balance sheet,and budgeted statement of cash flows comprise:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 9: Profit Planning and Activity-Based Budgeting

The comprehensive set of budgets that serves as a company's overall financial plan is commonly known as the financial budget.

FastTec sells electronics in retail outlets and on the Internet.It uses activity-based budgeting in the preparation of its selling,general,and administrative expense budget.Which of the following costs would the company likely classify as a unit-level expense on its budget?

To derive the raw material to purchase during an accounting period,an accountant would calculate the raw material required for production and then:

When an organization involves its many employees in the budgeting process in a meaningful way,the organization is said to be using an approach most commonly known as:

Wilmar Corporation is budgeting its equipment needs on an on-going basis,with a new quarter being added to the budget as the current quarter is completed.This type of budget is most commonly known as a:

Which of the following organizations is not likely to use budgets?

A company's sales forecast would likely consider all of the following factors except:

What is Swamp Fox's estimated sales in units for next year?

Which of the following budgets is based on many other master-budget components?

The master budget contains the following components,among others: (1)direct-material budget,(2)budgeted balance sheet,(3)production budget,and (4)cash budget.Which of these components would be prepared first and which would be prepared last?

Which of the following outcomes is (are)sometimes associated with participative budgeting?

Tidewater plans to sell 85,000 units of product no.794 in May,and each of these units requires three units of raw material.Pertinent data follow. On the basis of the information presented,how many units of raw material should Tidewater purchase for use in May production?

The budgeted income statement,budgeted balance sheet,and budgeted statement of cash flows comprise:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters