Question 1

Cash budgeting is important to which of the following?

Accepted Answer

A)  retail stores 
B)  manufacturing firms 
C)  not-for-profit agencies 
D)  local government agencies 
E)  all of these 
A)  retail stores 
B)  manufacturing firms 
C)  not-for-profit agencies 
D)  local government agencies 
E)  all of these

Question 2

Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $4 each and wire is $0.60 per yard. Connor wants to have 20% of the following month's production needs in ending raw materials inventory. On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory.
-Refer to Figure 9-10. How many boxes does Connor expect to purchase in January?

Accepted Answer

A)  159,650 
B)  114,420 
C)  214,550 
D)  148,500 
E)  138,420 
A)  159,650 
B)  114,420 
C)  214,550 
D)  148,500 
E)  138,420

Question 3

The __________________ shows the expected cost of all production costs other than direct materials and direct labor.

Accepted Answer

The answer of The __________________ shows the expected cost of...

Question 4

Identify each item as an advantage or disadvantage of budgeting.
-forces managers to plan

Accepted Answer

A) advantage 
B) disadvantage 
A) advantage 
B) disadvantage

Question 5

$\begin{array}{lrr}&\text { SR200 }&TX 500\
\text { May } & 8,000 & 20,000 \
\text { June } & 13,000 & 32,000 \
\text { July } & 11,000 & 39,000 \
\text { August } & 18,000 & 46,000
\end{array}$ Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A.
-Refer to Figure 9-2. How many units of TX500 are budgeted for production in June?

Accepted Answer

A)  47,600 
B)  34,800 
C)  32,000 
D)  45,000 
E)  12,800 
A)  47,600 
B)  34,800 
C)  32,000 
D)  45,000 
E)  12,800

Question 6

____________________ is individual behavior that is in basic conflict with the goals of the organization.

Accepted Answer

Dysfunctio

Question 7

Dickson Company has the following projected account balances for September 30 of the current year:
   Required:

Accepted Answer

The answer of Dickson Company has the following projected account...

Question 8

The master budget is

Accepted Answer

A)  the selective financial plan for the organization as a whole. 
B)  typically for a 1-year period corresponding to the fiscal year of the company. 
C)  broken down into daily and weekly budgets. 
D)  used for misinformation and coordination. 
E)  all of these. 
A)  the selective financial plan for the organization as a whole. 
B)  typically for a 1-year period corresponding to the fiscal year of the company. 
C)  broken down into daily and weekly budgets. 
D)  used for misinformation and coordination. 
E)  all of these.

Question 9

____ occurs when a manager deliberately underestimates revenues or overestimates costs.

Accepted Answer

A)  Budgetary slack 
B)  Pseudoparticipation 
C)  Goal congruence 
D)  Setting standards too high 
E)  None of these 
A)  Budgetary slack 
B)  Pseudoparticipation 
C)  Goal congruence 
D)  Setting standards too high 
E)  None of these

Question 10

Identify each item as either part of the operating budget or the financial budget.
-cash budget

Accepted Answer

A) Operating Budget 
B) Financial Budget 
A) Operating Budget 
B) Financial Budget

Question 11

Terrill Company makes and sells two types of shaving cream: foamy, and gel. Last year, Foamy sold for $2.30 per can, and Gel sold for $3.15 per can. Sales volume was as follows:
   Terrill expects sales for Foamy to increase by 5% over the same quarter last year. The Gel price will increase to $3.50, but aggressive advertising is expected to raise volume by 5% in quarters 1 and 4 and by 10% in quarters 2 and 3.
Prepare a sales budget for the coming year.

Accepted Answer

The answer of Terrill Company makes and sells two types...

Question 12

Which of the following statements is true?

Accepted Answer

A)  The overhead budget is typically composed of variable overhead and fixed overhead. 
B)  The direct labor budget uses an average wage rate for direct labor. 
C)  The production budget is not converted into dollars. 
D)  The sales budget includes both units and dollars. 
E)  All of these. 
A)  The overhead budget is typically composed of variable overhead and fixed overhead. 
B)  The direct labor budget uses an average wage rate for direct labor. 
C)  The production budget is not converted into dollars. 
D)  The sales budget includes both units and dollars. 
E)  All of these.

Question 13

Identify each item as either part of the operating budget or the financial budget.
-production budget

Accepted Answer

A) Operating Budget 
B) Financial Budget 
A) Operating Budget 
B) Financial Budget

Question 14

The ending finished goods inventory budget supplies information needed for the

Accepted Answer

A)  sales budget. 
B)  cash budget. 
C)  budgeted income statement. 
D)  cost of goods sold budget. 
E)  all of these. 
A)  sales budget. 
B)  cash budget. 
C)  budgeted income statement. 
D)  cost of goods sold budget. 
E)  all of these.

Question 15

Traditional organization theory uses which of the following to motivate workers?

Accepted Answer

A)  Bonuses 
B)  Self-esteem 
C)  Nature of the work itself 
D)  Increased responsibility 
E)  Job satisfaction 
A)  Bonuses 
B)  Self-esteem 
C)  Nature of the work itself 
D)  Increased responsibility 
E)  Job satisfaction

Question 16

Budgets are financial plans for the future.

Accepted Answer

A) True 
 B)False

Question 17

Uma Company production has variable overhead costs of $8 per direct labor hour and fixed overhead costs of $56,000 per month. Budgeted production for the next three months is as follows:
   Each unit requires three hours of direct labor.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Above nu

Question 18

$\begin{array}{ll}
\text { October } & 75,000 \
\text { November } & 98,000 \
\text { December } & 63,000
\end{array}$ Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month.
-Refer to Figure 9-9. How much cash is paid in November for berry purchases (rounded to the nearest dollar)?

Accepted Answer

A)  $25,258 
B)  $21,088 
C)  $28,900 
D)  $19,963 
E)  $32,212 
A)  $25,258 
B)  $21,088 
C)  $28,900 
D)  $19,963 
E)  $32,212

Question 19

Ressen Company finds that typically 30% of a month's sales are for cash. Payments on accounts receivable are 60% in the month of sale and 38% in the month following sale. Budgeted sales for June are $100,000, for July $140,000, and for August $120,000. What are the total cash receipts budgeted for July?

Accepted Answer

A)  $127,400 
B)  $85,400 
C)  $122,000 
D)  $262,000 
E)  $140,000 
A)  $127,400 
B)  $85,400 
C)  $122,000 
D)  $262,000 
E)  $140,000

Question 20

Every month, Lambert must make the following payments:
 $\begin{array}{lr}
\text { Rent } & \$ 5,000 \
\text { Wages } & \$ 14,000 \
\text { Utilities } & \$ 3,000 \
\text { Telephone } & \$ 400 \
\text { Loan on equipment } & \$ 1,200
\end{array}$ In mid-October, Lambert expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. September credit card purchases totaled $6,000.
-Refer to Figure 9-7. What are the total cash disbursements expected by Lambert during the month of October?

Accepted Answer

A)  $167,600 
B)  $172,100 
C)  $161,600 
D)  $55,600 
E)  $60,100 
A)  $167,600 
B)  $172,100 
C)  $161,600 
D)  $55,600 
E)  $60,100

Cash budgeting is important to which of the following?

The __________________ shows the expected cost of all production costs other than direct materials and direct labor.

Identify each item as an advantage or disadvantage of budgeting. -forces managers to plan

____________________ is individual behavior that is in basic conflict with the goals of the organization.

Dickson Company has the following projected account balances for September 30 of the current year: Required:

The master budget is

____ occurs when a manager deliberately underestimates revenues or overestimates costs.

Identify each item as either part of the operating budget or the financial budget. -cash budget

Which of the following statements is true?

Identify each item as either part of the operating budget or the financial budget. -production budget

The ending finished goods inventory budget supplies information needed for the

Traditional organization theory uses which of the following to motivate workers?

Budgets are financial plans for the future.

Uma Company production has variable overhead costs of $8 per direct labor hour and fixed overhead costs of $56,000 per month. Budgeted production for the next three months is as follows: Each unit requires three hours of direct labor.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 9: Profit Planning

Cash budgeting is important to which of the following?

The __________________ shows the expected cost of all production costs other than direct materials and direct labor.

Identify each item as an advantage or disadvantage of budgeting. -forces managers to plan

____________________ is individual behavior that is in basic conflict with the goals of the organization.

Dickson Company has the following projected account balances for September 30 of the current year: Required:

The master budget is

____ occurs when a manager deliberately underestimates revenues or overestimates costs.

Identify each item as either part of the operating budget or the financial budget. -cash budget

Which of the following statements is true?

Identify each item as either part of the operating budget or the financial budget. -production budget

The ending finished goods inventory budget supplies information needed for the

Traditional organization theory uses which of the following to motivate workers?

Budgets are financial plans for the future.

Uma Company production has variable overhead costs of $8 per direct labor hour and fixed overhead costs of $56,000 per month. Budgeted production for the next three months is as follows: Each unit requires three hours of direct labor.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters