Question 1

If the initial cash budget indicates a cash deficiency, the company must go out of business.

Accepted Answer

A) True 
 B)False

Question 2

A firm acquires information that can be used to improve decision making from a budgetary system.

Accepted Answer

A) True 
 B)False

Question 3

Calino Company developed the following data for the month of August.

Accepted Answer

@#IMG-DLM& Accounts Receivable

Question 4

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Accepted Answer

A) True 
 B)False

Question 5

Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's experience is that 40% of sales are cash, and the remainder is on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.

Accepted Answer

The answer of Wexler Company expects sales of $40,000 in...

Question 6

Identify each item as a component of the production budget or the direct materials purchases budget.
a.production budget
b.direct materials purchases budget
-beginning inventory of materials

Accepted Answer

A) production budget 
B) direct materials purchases budget 
A) production budget 
B) direct materials purchases budget

Question 7

The ____ is the person responsible for directing and coordinating the organization's overall budget process.

Accepted Answer

A)  budget master 
B)  controller 
C)  chief financial planner 
D)  budget director 
E)  chief accountant 
A)  budget master 
B)  controller 
C)  chief financial planner 
D)  budget director 
E)  chief accountant

Question 8

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 9-11. What is total selling expense?

Accepted Answer

A)  $65,000 
B)  $44,000 
C)  $84,000 
D)  $109,000 
E)  $39,000 
A)  $65,000 
B)  $44,000 
C)  $84,000 
D)  $109,000 
E)  $39,000

Question 9

Foster Company makes power tools. The sales budget for drills for the first four months of the year is:
  Foster has taken a just-in-time approach to production and wants only 5% of the next month's sales needs in ending inventory. January 1 inventory of drills was zero. Each drill takes 15 minutes of direct labor at $18 per hour. The factory overhead formula is $27,000 + $1.20 per direct labor hour.

Accepted Answer

The answer of Foster Company makes power tools. The sales...

Question 10

In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Accepted Answer

A)  finished goods inventories. 
B)  cash receipts. 
C)  factory overhead costs. 
D)  selling expenses. 
A)  finished goods inventories. 
B)  cash receipts. 
C)  factory overhead costs. 
D)  selling expenses.

Question 11

Identify each item as either part of the operating budget or the financial budget.
-budgeted capital expenditures

Accepted Answer

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

Question 12

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month.
-Refer to Figure 9-4. What is the budgeted production in units for November?

Accepted Answer

A)  100,000 
B)  140,000 
C)  121,000 
D)  125,600 
E)  139,000 
A)  100,000 
B)  140,000 
C)  121,000 
D)  125,600 
E)  139,000

Question 13

Bright Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of 2014 are as follows: $\begin{array}{lc}
\text { Month } & \text { Sales } \
\hline \text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 13,000
\end{array}$ Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25% of the next month's sales. Bright Lamp expects to sell the lamps for $25 each. January 2015 sales are projected at 16,000 lamps. How many lamps should be produced in November?

Accepted Answer

A)  11,000 lamps 
B)  10,500 lamps 
C)  14,000 lamps 
D)  13,750 lamps 
A)  11,000 lamps 
B)  10,500 lamps 
C)  14,000 lamps 
D)  13,750 lamps

Question 14

$\begin{array}{lrr}&\text { SR200 }&TX 500\
\text { May } & 8,000 & 20,000 \
\text { June } & 13,000 & 32,000 \
\text { July } & 11,000 & 39,000 \
\text { August } & 18,000 & 46,000
\end{array}$ 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. What is the budgeted amount of component A to be purchased in May?

Accepted Answer

A)  41,760 
B)  142,800 
C)  154,560 
D)  164,600 
E)  66,600 
A)  41,760 
B)  142,800 
C)  154,560 
D)  164,600 
E)  66,600

Question 15

Individual behavior that is in basic conflict with the goals of the organization is called goal congruence.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following budgets are needed to calculate a budgeted unit cost?

Accepted Answer

A)  Direct materials purchases budget 
B)  Direct labor budget 
C)  Overhead budget 
D)  Direct materials purchases budget and overhead budget 
E)  Direct materials purchases budget, direct labor budget, and overhead budget 
A)  Direct materials purchases budget 
B)  Direct labor budget 
C)  Overhead budget 
D)  Direct materials purchases budget and overhead budget 
E)  Direct materials purchases budget, direct labor budget, and overhead budget

Question 17

$\begin{array}{lr}
\text { Percent paid in the month of sale }&20\%\
\text {Percent paid in the month after the sale }&75\%\
\text { Percent paid in the second month after the sale }&2\%\
\end{array}$
 Cohlmia provided information on sales as follows:
 $\begin{array}{ll}
\text { September } & \$ 100,000 \
\text { October } & \$ 120,000 \
\text { November } & \$ 200,000 \
\text { December (expected) } & \$ 250,000
\end{array}$
-Refer to Figure 9-8. What are the expected cash receipts in the month of November?

Accepted Answer

A)  $200,000 
B)  $40,000 
C)  $190,000 
D)  $132,000 
E)  $114,000 
A)  $200,000 
B)  $40,000 
C)  $190,000 
D)  $132,000 
E)  $114,000

Question 18

The alignment of managerial and organizational goals is often referred to as _______________.

Accepted Answer

The answer of The alignment of managerial and organizational goals...

Question 19

$$\begin{array} { l l } 
\text { August } & 26,000 \
\text { September } & 48,000 \
\text { Octaber } & 31,000
\end{array}$$ Each sneaker requires 1.5 hours of direct labor time. Direct labor wages average $13 per hour. Monthly overhead averages $8 per direct labor hour plus fixed overhead of $4,300.
-Refer to Figure 9-3. What is the total overhead budgeted for the month of September?

Accepted Answer

A)  $680,000 
B)  $580,300 
C)  $142,100 
D)  $460,000 
E)  $362,100 
A)  $680,000 
B)  $580,300 
C)  $142,100 
D)  $460,000 
E)  $362,100

Question 20

Direct materials needed for production is calculated by

Accepted Answer

A)  multiplying units to be produced by direct materials per unit. 
B)  subtracting units to be produced from direct materials per unit. 
C)  dividing units to be produced by direct materials per unit. 
D)  adding units to be produced to direct materials per unit. 
E)  subtracting direct materials per unit from units to be produced. 
A)  multiplying units to be produced by direct materials per unit. 
B)  subtracting units to be produced from direct materials per unit. 
C)  dividing units to be produced by direct materials per unit. 
D)  adding units to be produced to direct materials per unit. 
E)  subtracting direct materials per unit from units to be produced.

If the initial cash budget indicates a cash deficiency, the company must go out of business.

A firm acquires information that can be used to improve decision making from a budgetary system.

Calino Company developed the following data for the month of August.

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's experience is that 40% of sales are cash, and the remainder is on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.

Identify each item as a component of the production budget or the direct materials purchases budget. a.production budget b.direct materials purchases budget -beginning inventory of materials

The ____ is the person responsible for directing and coordinating the organization's overall budget process.

In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Identify each item as either part of the operating budget or the financial budget. -budgeted capital expenditures

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month. -Refer to Figure 9-4. What is the budgeted production in units for November?

Individual behavior that is in basic conflict with the goals of the organization is called goal congruence.

Which of the following budgets are needed to calculate a budgeted unit cost?

The alignment of managerial and organizational goals is often referred to as _______________.

Direct materials needed for production is calculated by

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

If the initial cash budget indicates a cash deficiency, the company must go out of business.

A firm acquires information that can be used to improve decision making from a budgetary system.

Calino Company developed the following data for the month of August.

The master budget is typically a comprehensive financial plan for the organization for the past fiscal year.

Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's experience is that 40% of sales are cash, and the remainder is on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.

Identify each item as a component of the production budget or the direct materials purchases budget. a.production budget b.direct materials purchases budget -beginning inventory of materials

The ____ is the person responsible for directing and coordinating the organization's overall budget process.

In going from the sales budget to the production budget, adjustments to the sales budget need to be made for

Identify each item as either part of the operating budget or the financial budget. -budgeted capital expenditures

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month. -Refer to Figure 9-4. What is the budgeted production in units for November?

Individual behavior that is in basic conflict with the goals of the organization is called goal congruence.

Which of the following budgets are needed to calculate a budgeted unit cost?

The alignment of managerial and organizational goals is often referred to as _______________.

Direct materials needed for production is calculated by

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