Question 1

If we increase the selling price of our product,we can always expect an increase in total revenue.

Accepted Answer

A) True 
 B)False

Question 2

Human factors are crucial parts of budgeting.

Accepted Answer

A) True 
 B)False

Question 3

Investing decisions deal with how to obtain the funds to acquire resources.

Accepted Answer

A) True 
 B)False

Question 4

Top management support is critical for obtaining lower-level management's participation in the formulation of budgets and for successful administration of budgets.

Accepted Answer

A) True 
 B)False

Question 5

Companies that use ERP systems,and other such budgeting tools,find that these systems simplify budgeting and increase the computational burden and time required to prepare budgets.

Accepted Answer

A) True 
 B)False

Question 6

The cash budget is a schedule of expected cash receipts and disbursements that:

Accepted Answer

A) is prepared immediately after the sales forecast. 
B) requires an ageing of accounts receivable and accounts payable. 
C) predicts the effect on the cash position at given levels of operations. 
D) is a self-liquidating cycle. 
A) is prepared immediately after the sales forecast. 
B) requires an ageing of accounts receivable and accounts payable. 
C) predicts the effect on the cash position at given levels of operations. 
D) is a self-liquidating cycle.

Question 7

Managers should think about controllability only in the context of performance evaluation.

Accepted Answer

A) True 
 B)False

Question 8

A responsibility centre is a part,segment,or subunit of an organisation,whose manager is accountable for a specified set of activities.

Accepted Answer

A) True 
 B)False

Question 9

The number of units to be produced is the key to computing the usage of direct materials in quantities and in dollars.

Accepted Answer

A) True 
 B)False

Question 10

The self-liquidating cycle is the movement from cash to inventories to receivables and back to cash.

Accepted Answer

A) True 
 B)False

Question 11

Non-manufacturing costs include:

Accepted Answer

A) product design. 
B) direct materials purchased. 
C) direct labour. 
D) direct materials used. 
A) product design. 
B) direct materials purchased. 
C) direct labour. 
D) direct materials used.

Question 12

As employees get closer to a goal,they:

Accepted Answer

A) relax. 
B) tell their friends. 
C) set a new goal. 
D) work harder to achieve it. 
A) relax. 
B) tell their friends. 
C) set a new goal. 
D) work harder to achieve it.

Question 13

Budgeting includes only the financial aspects of the plan and not any non-financial aspects such as the number of physical units manufactured.

Accepted Answer

A) True 
 B)False

Question 14

Answer the following questions using the information below:
Wallaby Company has the following information:
 $$\begin{array} { l c } 
\text { Month } & \text { Budgeted Purchases } \
\text { January } & \$ 26800 \
\text { February } & 29000 \
\text { March } & 30520 \
\text { April } & 29480 \
\text { May } & 27680
\end{array}$$ Purchases are paid for in the following manner:
10% of the purchase amount in the month of purchase
50% of the purchase amount in the month after purchase
40% of the purchase amount in the month after purchase
-What is the expected balance in Accounts Payable as of 31 March?

Accepted Answer

A) $39 068 
B) $18 312 
C) $30 520 
D) $2900 
A) $39 068 
B) $18 312 
C) $30 520 
D) $2900

Question 15

A good budgeting system forces managers to examine the business as they plan,so they can:

Accepted Answer

A) detect inaccurate historical records. 
B) set specific expectations against which actual results can be compared. 
C) get promoted for doing a good job. 
D) complete the budgeting task on time. 
A) detect inaccurate historical records. 
B) set specific expectations against which actual results can be compared. 
C) get promoted for doing a good job. 
D) complete the budgeting task on time.

Question 16

The manufacturing labour budget depends on wage rates,production methods,and hiring plans.

Accepted Answer

A) True 
 B)False

Question 17

A ________ identifies how each product is manufactured,specifying all materials
(and components),the sequence in which the materials are used,the quantity of materials in
Each finished unit,and the work centres where the operations are performed.

Accepted Answer

A) packing slip 
B) time ticket 
C) sales invoice 
D) bill of materials 
A) packing slip 
B) time ticket 
C) sales invoice 
D) bill of materials

Question 18

Answer the following questions using the information below:
Ku-ring-gai & Co expects to sell 25 000 pool cues for $12.00 each.Direct materials costs are $2.00,direct manufacturing labour is $4.00,and manufacturing overhead is $0.80 per pool cue.The following inventory levels apply to 2017:
 $$\begin{array} { l r r } 
& \text { Beginning inventory } & \text { Ending inventory } \
\text { Direct materials } & 24000 \text { units } & 24000 \text { units } \
\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \
\text { Finished goods inventory } & 2000 \text { units } & 2500 \text { units }
\end{array}$$
-How many pool cues need to be produced in 2018?

Accepted Answer

A) 19 500 cues 
B) 22 500 cues 
C) 25 500 cues 
D) 22 000 cues 
A) 19 500 cues 
B) 22 500 cues 
C) 25 500 cues 
D) 22 000 cues

Question 19

Describe the concept of kaizen budgeting.

Accepted Answer

Kaizen budgeting explicitly incorporates

Question 20

Even in the face of changing conditions,attaining the original budget is critical.

Accepted Answer

A) True 
 B)False

If we increase the selling price of our product,we can always expect an increase in total revenue.

Human factors are crucial parts of budgeting.

Investing decisions deal with how to obtain the funds to acquire resources.

Top management support is critical for obtaining lower-level management's participation in the formulation of budgets and for successful administration of budgets.

Companies that use ERP systems,and other such budgeting tools,find that these systems simplify budgeting and increase the computational burden and time required to prepare budgets.

The cash budget is a schedule of expected cash receipts and disbursements that:

Managers should think about controllability only in the context of performance evaluation.

A responsibility centre is a part,segment,or subunit of an organisation,whose manager is accountable for a specified set of activities.

The number of units to be produced is the key to computing the usage of direct materials in quantities and in dollars.

The self-liquidating cycle is the movement from cash to inventories to receivables and back to cash.

Non-manufacturing costs include:

As employees get closer to a goal,they:

Budgeting includes only the financial aspects of the plan and not any non-financial aspects such as the number of physical units manufactured.

A good budgeting system forces managers to examine the business as they plan,so they can:

The manufacturing labour budget depends on wage rates,production methods,and hiring plans.

A ________ identifies how each product is manufactured,specifying all materials (and components),the sequence in which the materials are used,the quantity of materials in Each finished unit,and the work centres where the operations are performed.

Describe the concept of kaizen budgeting.

Even in the face of changing conditions,attaining the original budget is critical.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

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

Measuring and Reporting Sustainability

Filters

Exam 11: Budgeting, Management Control and Responsibility Accounting

If we increase the selling price of our product,we can always expect an increase in total revenue.

Human factors are crucial parts of budgeting.

Investing decisions deal with how to obtain the funds to acquire resources.

Top management support is critical for obtaining lower-level management's participation in the formulation of budgets and for successful administration of budgets.

Companies that use ERP systems,and other such budgeting tools,find that these systems simplify budgeting and increase the computational burden and time required to prepare budgets.

The cash budget is a schedule of expected cash receipts and disbursements that:

Managers should think about controllability only in the context of performance evaluation.

A responsibility centre is a part,segment,or subunit of an organisation,whose manager is accountable for a specified set of activities.

The number of units to be produced is the key to computing the usage of direct materials in quantities and in dollars.

The self-liquidating cycle is the movement from cash to inventories to receivables and back to cash.

Non-manufacturing costs include:

As employees get closer to a goal,they:

Budgeting includes only the financial aspects of the plan and not any non-financial aspects such as the number of physical units manufactured.

A good budgeting system forces managers to examine the business as they plan,so they can:

The manufacturing labour budget depends on wage rates,production methods,and hiring plans.

A ________ identifies how each product is manufactured,specifying all materials (and components),the sequence in which the materials are used,the quantity of materials in Each finished unit,and the work centres where the operations are performed.

Describe the concept of kaizen budgeting.

Even in the face of changing conditions,attaining the original budget is critical.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

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

Measuring and Reporting Sustainability

Filters