Question 1

Which of the following is not true about the framework for judging performance?

Accepted Answer

A) Budgets enable a company's managers to measure actual performance against predicted performance. 
B) A limitation of past results often incorporates past mistakes and substandard performance. 
C) Future conditions can be expected to differ from the past. 
D) The budget is not the only benchmark companies use to evaluate past performance. 
E) Using only the budget fails to create an incentive for subordinates to set targets that are relatively easy to achieve. 
A) Budgets enable a company's managers to measure actual performance against predicted performance. 
B) A limitation of past results often incorporates past mistakes and substandard performance. 
C) Future conditions can be expected to differ from the past. 
D) The budget is not the only benchmark companies use to evaluate past performance. 
E) Using only the budget fails to create an incentive for subordinates to set targets that are relatively easy to achieve.

Question 2

Which of the following is true about the cash available for needs before financing?

Accepted Answer

A) Beginning cash balance minus receipts equal the total cash available for needs before any financing. 
B) Cash receipts do not depend on collections of accounts receivable. 
C) Cash receipts do not depend on cash sales. 
D) Cash receipts to not depend on reoccurring rent and royalty receipts. 
E) Information on the expected collectability of accounts receivable is needed for accurate predictions. 
A) Beginning cash balance minus receipts equal the total cash available for needs before any financing. 
B) Cash receipts do not depend on collections of accounts receivable. 
C) Cash receipts do not depend on cash sales. 
D) Cash receipts to not depend on reoccurring rent and royalty receipts. 
E) Information on the expected collectability of accounts receivable is needed for accurate predictions.

Question 3

When a company uses borrowed money to acquire resources that it uses to produce and sell finished goods,and then uses the proceeds from sales to repay the loan,the loan is:

Accepted Answer

A) adjustable. 
B) assumable. 
C) self-liquidating. 
D) a long-term bank loan. 
E) government secured. 
A) adjustable. 
B) assumable. 
C) self-liquidating. 
D) a long-term bank loan. 
E) government secured.

Question 4

What is the benefit of the Kaizen technique to cash-strapped states and agencies in the United States?

Accepted Answer

Cash-strapped states and agencies in the

Question 5

Budgeted financial statements are sometimes called:

Accepted Answer

A) cost centers. 
B) profit centers. 
C) investment centers. 
D) responsibility centers. 
E) pro forma statements. 
A) cost centers. 
B) profit centers. 
C) investment centers. 
D) responsibility centers. 
E) pro forma statements.

Question 6

How do managers at multinational companies translate their operating performance into a single currency?

Accepted Answer

The translation is based on th

Question 7

Budgeting is a cross-functional activity.

Accepted Answer

A) True 
 B)False

Question 8

A ________ is any cost that is primarily subject to the influence of a given responsibility center manager for a given period.

Accepted Answer

A) controllability 
B) controllable cost 
C) cost center 
D) responsibility accounting 
E) budgetary slack 
A) controllability 
B) controllable cost 
C) cost center 
D) responsibility accounting 
E) budgetary slack

Question 9

________ are mathematical representations of the relationships among operating activities,financing activities,and other factors that affect the master budget.

Accepted Answer

A) Cash budget 
B) Master budget 
C) Process budget 
D) Production analysis 
E) Financial planning models 
A) Cash budget 
B) Master budget 
C) Process budget 
D) Production analysis 
E) Financial planning models

Question 10

________ is the practice of underestimating budgeted revenues,or overestimating budgeted costs,to make budgeted targets more easily to achieve.

Accepted Answer

A) Kaizen budgeting 
B) Budgetary slack 
C) Rolling budget 
D) Contingent budget 
E) Contingency budget 
A) Kaizen budgeting 
B) Budgetary slack 
C) Rolling budget 
D) Contingent budget 
E) Contingency budget

Question 11

________ is a "what-if" technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes.

Accepted Answer

A) Cash analysis 
B) Master budget 
C) Production analysis 
D) Sensitivity analysis 
E) Financial Planning Model 
A) Cash analysis 
B) Master budget 
C) Production analysis 
D) Sensitivity analysis 
E) Financial Planning Model

Question 12

How can managers use the ongoing-budget process to anticipate economy recovery from a recession?

Accepted Answer

Prior to the start of each fiscal year,m

Question 13

Budgets help managers assess strategic risks and opportunities by providing them with feedback about the likely effects of their strategies and plans.

Accepted Answer

A) True 
 B)False

Question 14

How do managers compute the receipts and disbursements on the schedule of cash collections?

Accepted Answer

The managerial accountant computes the r

Question 15

Budgets should not be administered rigidly.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true about the budgeting process?

Accepted Answer

A) Managers do not use budgets to compel strategic analysis. 
B) Managers do not use budgets to promote communication in the workplace. 
C) Managers do not use budgets to promote communication across subunits in the workplace. 
D) To be useful,managers must support the budget and be flexible if economic conditions change. 
E) To be useful,managers do not support the budget and be flexible if economic conditions change. 
A) Managers do not use budgets to compel strategic analysis. 
B) Managers do not use budgets to promote communication in the workplace. 
C) Managers do not use budgets to promote communication across subunits in the workplace. 
D) To be useful,managers must support the budget and be flexible if economic conditions change. 
E) To be useful,managers do not support the budget and be flexible if economic conditions change.

Question 17

Prime Time Home Furniture,a warehouse store specializing in bedroom furnishing sets is assembling the revenue budget for the next fiscal year.Sales of the current year indicate that they sold 64,000 units from their Super-Savings line and 12,000 units from their Specialty line.The average price of each Super-Savings unit is $800,while the average price of each Specialty unit is $1,450.
Required
Compute the total revenues? Next,determine which line provides the most revenue.

Accepted Answer

A) $17,400,000;The Specialty line. 
B) $58,600,000;The Super-Savings line. 
C) $68,600,000;The Super-Savings line. 
D) $23,500,000;The Specialty line. 
E) $32,300,000;The Specialty line. 
A) $17,400,000;The Specialty line. 
B) $58,600,000;The Super-Savings line. 
C) $68,600,000;The Super-Savings line. 
D) $23,500,000;The Specialty line. 
E) $32,300,000;The Specialty line.

Question 18

________ is a system that measures the plans,budgets,actions,and actual results of each responsibility center.

Accepted Answer

A) Revenue center 
B) Responsibility center 
C) Responsibility accounting 
D) Organization structure 
E) Cost center 
A) Revenue center 
B) Responsibility center 
C) Responsibility accounting 
D) Organization structure 
E) Cost center

Question 19

The Sherry Point Light Foundation has budgeted sales of 45,000 units,target ending finished goods inventory of 8,000 units,and beginning finished goods inventory of 3,000 units.
Required
Compute the number of units that the manager expects to produce next year.

Accepted Answer

A) 25,000 units 
B) 30,000 units 
C) 35,000 units 
D) 45,000 units 
E) 50,000 units 
A) 25,000 units 
B) 30,000 units 
C) 35,000 units 
D) 45,000 units 
E) 50,000 units

Question 20

The managerial accountant at the Chesapeake Bay Circuit Manufacturing Company expects to sell 120,000 circuits in 2013 for $12 each.There are 5,000 circuits in beginning finished goods inventory with target ending inventory of $5,000 circuits.The company keeps no work-in-process inventory.
Required
Compute the amount of sales revenue reported on the 2013 budgeted income statement.

Accepted Answer

A) $1,000,000 
B) $1,200,200 
C) $1,440,000 
D) $1,300,400 
E) $1,600,200 
A) $1,000,000 
B) $1,200,200 
C) $1,440,000 
D) $1,300,400 
E) $1,600,200

Which of the following is not true about the framework for judging performance?

Which of the following is true about the cash available for needs before financing?

When a company uses borrowed money to acquire resources that it uses to produce and sell finished goods,and then uses the proceeds from sales to repay the loan,the loan is:

What is the benefit of the Kaizen technique to cash-strapped states and agencies in the United States?

Budgeted financial statements are sometimes called:

How do managers at multinational companies translate their operating performance into a single currency?

Budgeting is a cross-functional activity.

A ________ is any cost that is primarily subject to the influence of a given responsibility center manager for a given period.

________ are mathematical representations of the relationships among operating activities,financing activities,and other factors that affect the master budget.

________ is the practice of underestimating budgeted revenues,or overestimating budgeted costs,to make budgeted targets more easily to achieve.

________ is a "what-if" technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes.

How can managers use the ongoing-budget process to anticipate economy recovery from a recession?

Budgets help managers assess strategic risks and opportunities by providing them with feedback about the likely effects of their strategies and plans.

How do managers compute the receipts and disbursements on the schedule of cash collections?

Budgets should not be administered rigidly.

Which of the following is true about the budgeting process?

________ is a system that measures the plans,budgets,actions,and actual results of each responsibility center.

The Sherry Point Light Foundation has budgeted sales of 45,000 units,target ending finished goods inventory of 8,000 units,and beginning finished goods inventory of 3,000 units. Required Compute the number of units that the manager expects to produce next year.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 12: Master Budget and Responsibility Accounting

Which of the following is not true about the framework for judging performance?

Which of the following is true about the cash available for needs before financing?

When a company uses borrowed money to acquire resources that it uses to produce and sell finished goods,and then uses the proceeds from sales to repay the loan,the loan is:

What is the benefit of the Kaizen technique to cash-strapped states and agencies in the United States?

Budgeted financial statements are sometimes called:

How do managers at multinational companies translate their operating performance into a single currency?

Budgeting is a cross-functional activity.

A ________ is any cost that is primarily subject to the influence of a given responsibility center manager for a given period.

________ are mathematical representations of the relationships among operating activities,financing activities,and other factors that affect the master budget.

________ is the practice of underestimating budgeted revenues,or overestimating budgeted costs,to make budgeted targets more easily to achieve.

________ is a "what-if" technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes.

How can managers use the ongoing-budget process to anticipate economy recovery from a recession?

Budgets help managers assess strategic risks and opportunities by providing them with feedback about the likely effects of their strategies and plans.

How do managers compute the receipts and disbursements on the schedule of cash collections?

Budgets should not be administered rigidly.

Which of the following is true about the budgeting process?

________ is a system that measures the plans,budgets,actions,and actual results of each responsibility center.

The Sherry Point Light Foundation has budgeted sales of 45,000 units,target ending finished goods inventory of 8,000 units,and beginning finished goods inventory of 3,000 units. Required Compute the number of units that the manager expects to produce next year.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters