Question 1

Kaizen refers to incorporating cost reductions:

Accepted Answer

A) in each successive budgeting period 
B) in each successive sales forecast 
C) in all customer service centers 
D) All of these answers are correct. 
A) in each successive budgeting period 
B) in each successive sales forecast 
C) in all customer service centers 
D) All of these answers are correct.

Question 2

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation, a retailer:
  
-Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:   What is projected operating income if direct materials costs of T-Shirts increase to $4.00 per unit and direct labor costs of Sweatshirts increase to $8.20 per unit.

Accepted Answer

A) $293,000 
B) $90,000 
C) $203,000 
D) $473,000 
A) $293,000 
B) $90,000 
C) $203,000 
D) $473,000

Question 3

Participation of employees in the budgeting process helps to create:

Accepted Answer

A) greater commitment 
B) greater anxiety 
C) less commitment 
D) better past performance 
A) greater commitment 
B) greater anxiety 
C) less commitment 
D) better past performance

Question 4

Answer the following questions using the information below:
Kramer Enterprises reports year-end information from 2010 as follows:
       Kramer is developing the 2011 budget. In 2011 the company would like to increase selling prices by 8%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost.
-What is budgeted cost of goods sold for 2011?

Accepted Answer

A) $622,080 
B) $576,000 
C) $691,200 
D) $640,000 
A) $622,080 
B) $576,000 
C) $691,200 
D) $640,000

Question 5

Activity-based budgeting would permit the use of multiple drivers and multiple cost pools in the budgeting process.

Accepted Answer

A) True 
 B)False

Question 6

Which statement about controllability is NOT true:

Accepted Answer

A) few costs are clearly under the sole influence of one manager 
B) holds managers responsible for uncontrollable costs 
C) with a long enough time span, all costs will come under somebody's control 
D) describes the degree of influence that managers have over a particular item 
A) few costs are clearly under the sole influence of one manager 
B) holds managers responsible for uncontrollable costs 
C) with a long enough time span, all costs will come under somebody's control 
D) describes the degree of influence that managers have over a particular item

Question 7

The Japanese use kaizen to mean financing alternatives.

Accepted Answer

A) True 
 B)False

Question 8

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:
  
-What are the 2012 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Accepted Answer

A) $0; $192,000; $38,400 
B) $78,000; $156,000; $31,200 
C) $160,000; $80,000; $32,000 
D) $82,000; $164,000; $32,800 
A) $0; $192,000; $38,400 
B) $78,000; $156,000; $31,200 
C) $160,000; $80,000; $32,000 
D) $82,000; $164,000; $32,800

Question 9

Activity-based-costing analysis makes no distinction between:

Accepted Answer

A) direct-materials inventory and work-in-process inventory 
B) short-run variable costs and short-run fixed costs 
C) parts of the supply chain 
D) components of the value chain 
A) direct-materials inventory and work-in-process inventory 
B) short-run variable costs and short-run fixed costs 
C) parts of the supply chain 
D) components of the value chain

Question 10

A company's actual performance should be compared against budgeted amounts for the same accounting period so that:

Accepted Answer

A) adjustments for future conditions can be included 
B) no feedback is possible 
C) inefficiencies of the past year can be included 
D) a rolling budget can be implemented 
A) adjustments for future conditions can be included 
B) no feedback is possible 
C) inefficiencies of the past year can be included 
D) a rolling budget can be implemented

Question 11

The manufacturing overhead costs budget includes budgeted amounts for:

Accepted Answer

A) indirect materials 
B) indirect manufacturing labor 
C) depreciation on factory equipment 
D) All of these answers are correct. 
A) indirect materials 
B) indirect manufacturing labor 
C) depreciation on factory equipment 
D) All of these answers are correct.

Question 12

The cash flow statement does NOT include:

Accepted Answer

A) cash inflows from the collection of receivables 
B) cash outflows paid toward raw material purchases 
C) all sales revenues 
D) interest paid and received 
A) cash inflows from the collection of receivables 
B) cash outflows paid toward raw material purchases 
C) all sales revenues 
D) interest paid and received

Question 13

Budgeted financial statements are also referred to as pro forma statements.

Accepted Answer

A) True 
 B)False

Question 14

Multinational budgeting is more complex than budgeting in a domestic environment due to the possibility of:

Accepted Answer

A) exchange rate fluctuations 
B) sophisticated techniques used by multinationals such as forward, future, and options contracts 
C) different political, legal, and economic environments faced by multinationals 
D) All of these answers are correct. 
A) exchange rate fluctuations 
B) sophisticated techniques used by multinationals such as forward, future, and options contracts 
C) different political, legal, and economic environments faced by multinationals 
D) All of these answers are correct.

Question 15

Answer the following questions using the information below:
Bear Company has the following information:
   Purchases are paid for in the following manner:
  
-What is the expected balance in Accounts Payable as of March 31?

Accepted Answer

A) $39,068 
B) $18,312 
C) $2,900 
D) $30,520 
A) $39,068 
B) $18,312 
C) $2,900 
D) $30,520

Question 16

The revenues budget identifies:

Accepted Answer

A) expected cash flows for each product 
B) actual sales from last year for each product 
C) the expected level of sales for the company 
D) the variance of sales from actual for each product 
A) expected cash flows for each product 
B) actual sales from last year for each product 
C) the expected level of sales for the company 
D) the variance of sales from actual for each product

Question 17

A budget should/can do all of the following EXCEPT:

Accepted Answer

A) be prepared by managers from different functional areas working independently of each other 
B) be adjusted if new opportunities become available during the year 
C) help management allocate limited resources 
D) become the performance standard against which firms can compare the actual results 
A) be prepared by managers from different functional areas working independently of each other 
B) be adjusted if new opportunities become available during the year 
C) help management allocate limited resources 
D) become the performance standard against which firms can compare the actual results

Question 18

Answer the following questions using the information below:
Monetary Company has the following sales budget for the last six months of 2011:
   Historically, the cash collection of sales has been as follows:
  
-What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the second month following the sale?

Accepted Answer

A) $199,000 
B) $97,000 
C) $89,800 
D) $93,000 
A) $199,000 
B) $97,000 
C) $89,800 
D) $93,000

Question 19

Financial planning software packages assist management with:

Accepted Answer

A) assigning responsibility to various levels of management 
B) identifying the target customer 
C) sensitivity analysis in their planning and budgeting activities 
D) achieving greater commitment from lower management 
A) assigning responsibility to various levels of management 
B) identifying the target customer 
C) sensitivity analysis in their planning and budgeting activities 
D) achieving greater commitment from lower management

Question 20

Answer the following questions using the information below:
Monetary Company has the following sales budget for the last six months of 2011:
   Historically, the cash collection of sales has been as follows:
  
-Cash collections for October are:

Accepted Answer

A) $117,000 
B) $184,800 
C) $199,000 
D) $176,400 
A) $117,000 
B) $184,800 
C) $199,000 
D) $176,400

Kaizen refers to incorporating cost reductions:

Participation of employees in the budgeting process helps to create:

Activity-based budgeting would permit the use of multiple drivers and multiple cost pools in the budgeting process.

Which statement about controllability is NOT true:

The Japanese use kaizen to mean financing alternatives.

Activity-based-costing analysis makes no distinction between:

A company's actual performance should be compared against budgeted amounts for the same accounting period so that:

The manufacturing overhead costs budget includes budgeted amounts for:

The cash flow statement does NOT include:

Budgeted financial statements are also referred to as pro forma statements.

Multinational budgeting is more complex than budgeting in a domestic environment due to the possibility of:

Answer the following questions using the information below: Bear Company has the following information: Purchases are paid for in the following manner: -What is the expected balance in Accounts Payable as of March 31?

The revenues budget identifies:

A budget should/can do all of the following EXCEPT:

Financial planning software packages assist management with:

Answer the following questions using the information below: Monetary Company has the following sales budget for the last six months of 2011: Historically, the cash collection of sales has been as follows: -Cash collections for October are:

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

Kaizen refers to incorporating cost reductions:

Participation of employees in the budgeting process helps to create:

Activity-based budgeting would permit the use of multiple drivers and multiple cost pools in the budgeting process.

Which statement about controllability is NOT true:

The Japanese use kaizen to mean financing alternatives.

Activity-based-costing analysis makes no distinction between:

A company's actual performance should be compared against budgeted amounts for the same accounting period so that:

The manufacturing overhead costs budget includes budgeted amounts for:

The cash flow statement does NOT include:

Budgeted financial statements are also referred to as pro forma statements.

Multinational budgeting is more complex than budgeting in a domestic environment due to the possibility of:

Answer the following questions using the information below: Bear Company has the following information: Purchases are paid for in the following manner: -What is the expected balance in Accounts Payable as of March 31?

The revenues budget identifies:

A budget should/can do all of the following EXCEPT:

Financial planning software packages assist management with:

Answer the following questions using the information below: Monetary Company has the following sales budget for the last six months of 2011: Historically, the cash collection of sales has been as follows: -Cash collections for October are:

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