Question 1

Activity-based budgeting includes all the following steps EXCEPT:

Accepted Answer

A) determining demands for activities from sales and production targets 
B) computing the cost of performing activities 
C) determining a separate cost-driver rate for each department 
D) describing the budget as costs of activities rather than costs of functions 
A) determining demands for activities from sales and production targets 
B) computing the cost of performing activities 
C) determining a separate cost-driver rate for each department 
D) describing the budget as costs of activities rather than costs of functions

Question 2

________ includes a budgeted statement of cash flows and a budgeted balance sheet.

Accepted Answer

A) An annual report 
B) The financial budget 
C) The operating budget 
D) The capital expenditures budget 
A) An annual report 
B) The financial budget 
C) The operating budget 
D) The capital expenditures budget

Question 3

Lubriderm Corporation has the following budgeted sales for the next six-month period:
   There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month.
Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds.
Required:
a. Prepare production budgets in units for July, August, and September.
b. Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month.

Accepted Answer

The answer of Lubriderm Corporation has the following budgeted sales...

Question 4

A budget can do all of the following EXCEPT:

Accepted Answer

A) promote coordination among subunits 
B) determine actual profitability 
C) motivate managers 
D) motivate employees 
A) promote coordination among subunits 
B) determine actual profitability 
C) motivate managers 
D) motivate employees

Question 5

Discuss the importance of the sales forecast and items that influence its accuracy.

Accepted Answer

All other budgets are based on informati

Question 6

The budgeting process is most strongly influenced by:

Accepted Answer

A) the capital budget 
B) the budgeted statement of cash flows 
C) the sales forecast 
D) the production budget 
A) the capital budget 
B) the budgeted statement of cash flows 
C) the sales forecast 
D) the production budget

Question 7

Answer the following questions using the information below:
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2011:
  
-How many ceramic vases need to be produced in 2012?

Accepted Answer

A) 5,900 vases 
B) 6,100 vases 
C) 7,000 vases 
D) 6,000 vases 
A) 5,900 vases 
B) 6,100 vases 
C) 7,000 vases 
D) 6,000 vases

Question 8

Answer the following questions using the information below:
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2012:
   Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in the first quarter (January, February, March)of 2012?

Accepted Answer

A) 37,000 mattresses 
B) 38,800 mattresses 
C) 41,800 mattresses 
D) 44,800 mattresses 
A) 37,000 mattresses 
B) 38,800 mattresses 
C) 41,800 mattresses 
D) 44,800 mattresses

Question 9

Kaizen budgeting encourages major improvements rather than small incremental changes.

Accepted Answer

A) True 
 B)False

Activity-based budgeting includes all the following steps EXCEPT:

________ includes a budgeted statement of cash flows and a budgeted balance sheet.

A budget can do all of the following EXCEPT:

Discuss the importance of the sales forecast and items that influence its accuracy.

The budgeting process is most strongly influenced by:

Kaizen budgeting encourages major improvements rather than small incremental changes.

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters

Exam 6: Master Budget and Responsibility Accounting

Activity-based budgeting includes all the following steps EXCEPT:

________ includes a budgeted statement of cash flows and a budgeted balance sheet.

A budget can do all of the following EXCEPT:

Discuss the importance of the sales forecast and items that influence its accuracy.

The budgeting process is most strongly influenced by:

Kaizen budgeting encourages major improvements rather than small incremental changes.

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters