Question 1

What is the budgeted unit of production for February?

Accepted Answer

A) 186,000 
B) 181,000 
C) 222,000 
D) 174,000 
A) 186,000 
B) 181,000 
C) 222,000 
D) 174,000

Question 2

Budgeted production for product XXX during the month is

Accepted Answer

A) 522,000 units 
B) 552,000 units 
C) 518,000 units 
D) 520,000 units 
A) 522,000 units 
B) 552,000 units 
C) 518,000 units 
D) 520,000 units

Question 3

A company's history indicates that 20% of its sales are for cash and the rest are on credit.Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible.Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively.The February expected cash receipts from all current and prior credit sales is

Accepted Answer

A) $61,200 
B) $57,000 
C) $66,400 
D) $90,250 
A) $61,200 
B) $57,000 
C) $66,400 
D) $90,250

Question 4

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called continuous budgeting.

Accepted Answer

A) True 
 B)False

Question 5

At the beginning of the period, the Cutting Department budgeted direct labor of $155,000, direct materials of $165,000, and fixed factory overhead of $15,000 for 9,000 hours of production.The department actually completed 10,000 hours of production.What is the appropriate total budget for the department, assuming it uses flexible budgeting?

Accepted Answer

A) $416,000 
B) $370,556 
C) $368,889 
D) $335,000 
A) $416,000 
B) $370,556 
C) $368,889 
D) $335,000

Question 6

The benefits of comparing actual performance of the operations against planned goals include all of the following except

Accepted Answer

A) providing prompt feedback to employees about their performance relative to the goal 
B) preventing unplanned expenditures 
C) helping to establish spending priorities 
D) determining how managers are performing against prior years' actual operating results 
A) providing prompt feedback to employees about their performance relative to the goal 
B) preventing unplanned expenditures 
C) helping to establish spending priorities 
D) determining how managers are performing against prior years' actual operating results

Question 7

A capital expenditures budget is prepared before the operating budgets.

Accepted Answer

A) True 
 B)False

Question 8

The first budget to be prepared is usually the production budget.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following budgets allow for adjustments in activity levels?

Accepted Answer

A) static budget 
B) continuous budget 
C) zero-based budget 
D) flexible budget 
A) static budget 
B) continuous budget 
C) zero-based budget 
D) flexible budget

Question 10

Total budgeted sales of both products for the year would be

Accepted Answer

A) $42,000 
B) $200,000 
C) $264,000 
D) $464,000 
A) $42,000 
B) $200,000 
C) $264,000 
D) $464,000

Question 11

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

Production and sales estimates for May for the Cardinal Co.are as follows:   The number of units expected to be sold in May is

Accepted Answer

A) 21,000 
B) 3,700 
C) 22,800 
D) 18,300 
A) 21,000 
B) 3,700 
C) 22,800 
D) 18,300

Question 13

Match each phrase that follows with the term a-f it describes..
-a plan that lists dollar amounts to be both spent on purchasing additional pant assets to carry out the budgeted business activities

Accepted Answer

A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet 
A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet

Question 14

Budgeted production of Product B for the year would be

Accepted Answer

A) 24,500 units 
B) 22,500 units 
C) 26,500 units 
D) 23,200 units 
A) 24,500 units 
B) 22,500 units 
C) 26,500 units 
D) 23,200 units

Question 15

A budget can be an effective means of communicating management's plans to the owners of a business.

Accepted Answer

A) True 
 B)False

Question 16

Production and sales estimates for June are as follows:   The number of units expected to be manufactured in June is

Accepted Answer

A) 11,000 
B) 12,500 
C) 15,500 
D) 13,500 
A) 11,000 
B) 12,500 
C) 15,500 
D) 13,500

Question 17

An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit.The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units.Total October sales are anticipated to be

Accepted Answer

A) $69,000 
B) $80,500 
C) $70,000 
D) $92,000 
A) $69,000 
B) $80,500 
C) $70,000 
D) $92,000

What is the budgeted unit of production for February?

Budgeted production for product XXX during the month is

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called continuous budgeting.

The benefits of comparing actual performance of the operations against planned goals include all of the following except

A capital expenditures budget is prepared before the operating budgets.

The first budget to be prepared is usually the production budget.

Which of the following budgets allow for adjustments in activity levels?

Total budgeted sales of both products for the year would be

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

Production and sales estimates for May for the Cardinal Co.are as follows: The number of units expected to be sold in May is

Match each phrase that follows with the term a-f it describes.. -a plan that lists dollar amounts to be both spent on purchasing additional pant assets to carry out the budgeted business activities

Budgeted production of Product B for the year would be

A budget can be an effective means of communicating management's plans to the owners of a business.

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit.The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units.Total October sales are anticipated to be

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Budgeting

What is the budgeted unit of production for February?

Budgeted production for product XXX during the month is

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called continuous budgeting.

The benefits of comparing actual performance of the operations against planned goals include all of the following except

A capital expenditures budget is prepared before the operating budgets.

The first budget to be prepared is usually the production budget.

Which of the following budgets allow for adjustments in activity levels?

Total budgeted sales of both products for the year would be

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

Production and sales estimates for May for the Cardinal Co.are as follows: The number of units expected to be sold in May is

Match each phrase that follows with the term a-f it describes.. -a plan that lists dollar amounts to be both spent on purchasing additional pant assets to carry out the budgeted business activities

Budgeted production of Product B for the year would be

A budget can be an effective means of communicating management's plans to the owners of a business.

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit.The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units.Total October sales are anticipated to be

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters