Question 1

The capital expenditures budget details future plans for acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 2

If Division Inc.expects to sell 200,000 units in the current year,desires ending inventory of 24,000 units,and has 22,000 units on hand as of the beginning of the year,the budgeted volume of production for the year is 202,000 units.

Accepted Answer

A) True 
 B)False

Question 3

Once a static budget has been determined,it is changed regularly as the underlying activity changes.

Accepted Answer

A) True 
 B)False

Question 4

Production and sales estimates for April are as follows: ​
  The budgeted total sales for April is

Accepted Answer

A)  $200,000 
B)  $230,000 
C)  $270,000 
D)  $250,000 
A)  $200,000 
B)  $230,000 
C)  $270,000 
D)  $250,000

Question 5

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 6

Employees view budgeting more positively when goals are established for them by senior management.

Accepted Answer

A) True 
 B)False

Question 7

When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company,the manager is experiencing

Accepted Answer

A)  budgetary slack 
B)  padding 
C)  goal conflict 
D)  cushions 
A)  budgetary slack 
B)  padding 
C)  goal conflict 
D)  cushions

Question 8

The cash payments expected for Finch Company in the month of May are

Accepted Answer

A)  $185,600 
B)  $149,900 
C)  $187,600 
D)  $189,100 
A)  $185,600 
B)  $149,900 
C)  $187,600 
D)  $189,100

Question 9

In preparing flexible budgets,the first step is to identify the fixed and variable components of the various costs and expenses being budgeted.

Accepted Answer

A) True 
 B)False

Question 10

The budgeted direct materials purchases is normally computed as the sum of (1)the materials for production and (2)the desired ending inventory.

Accepted Answer

A) True 
 B)False

Question 11

What is the budgeted units 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 12

As of January 1 of the current year,the Gunner Company had accounts receivables of $50,000.The sales for January,February,and March were as follows: $120,000,$140,000,and $150,000,respectively.Of each month's sales,20% are for cash.Of the remaining 80% (the credit sales),60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the accounts receivable balance as of March 31?

Accepted Answer

A)  $72,000 
B)  $48,000 
C)  $58,720 
D)  $60,000 
A)  $72,000 
B)  $48,000 
C)  $58,720 
D)  $60,000

Question 13

Which of the following budgets is not directly associated with the production budget?

Accepted Answer

A)  direct materials purchases budget 
B)  sales budget 
C)  capital expenditures budget 
D)  direct labor cost budget 
A)  direct materials purchases budget 
B)  sales budget 
C)  capital expenditures budget 
D)  direct labor cost budget

Question 14

To meet projected annual sales,Bluegill Manufacturers,Inc.needs to produce 75,000 machines for the year.The estimated January 1 inventory is 7,000 units,and the desired December 31 inventory is 12,000 units.What are projected sales units for the year?

Accepted Answer

The answer of To meet projected annual sales,Bluegill Manufacturers,Inc.needs to...

Question 15

After the sales budget is prepared,the production budget is normally prepared next.

Accepted Answer

A) True 
 B)False

Question 16

Future Technologies projected sales of 35,000 computers for this year.The estimated January 1 inventory is 3,000 units,and the desired December 31 inventory is 9,000 units.What is the budgeted production (in units)for the year?

Accepted Answer

The answer of Future Technologies projected sales of 35,000 computers...

Question 17

The total direct materials purchases (assuming no beginning or ending inventory of material)of Materials A and B required for August production is

Accepted Answer

A)  $1,080,000 for A; $1,296,000 for B 
B)  $1,080,000 for A; $648,000 for B 
C)  $1,125,000 for A; $675,000 for B 
D)  $1,170,000 for A; $702,000 for B 
A)  $1,080,000 for A; $1,296,000 for B 
B)  $1,080,000 for A; $648,000 for B 
C)  $1,125,000 for A; $675,000 for B 
D)  $1,170,000 for A; $702,000 for B

Question 18

A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting.

Accepted Answer

A) True 
 B)False

Question 19

The number of pounds of Materials A and B required for August production is

Accepted Answer

A)  216,000 lbs.of A; 72,000 lbs.of B 
B)  216,000 lbs.of A; 36,000 lbs.of B 
C)  225,000 lbs.of A; 37,500 lbs.of B 
D)  234,000 lbs.of A; 39,000 lbs.of B 
A)  216,000 lbs.of A; 72,000 lbs.of B 
B)  216,000 lbs.of A; 36,000 lbs.of B 
C)  225,000 lbs.of A; 37,500 lbs.of B 
D)  234,000 lbs.of A; 39,000 lbs.of B

Question 20

Willow Valley's April sales forecast projects that 7,000 units will sell at a price of $10.50 per unit.The desired ending inventory is 30% higher than the beginning inventory,which was 1,000 units.Budgeted production in April would be

Accepted Answer

A)  8,000 units 
B)  7,000 units 
C)  7,300 units 
D)  6,300 units 
A)  8,000 units 
B)  7,000 units 
C)  7,300 units 
D)  6,300 units

Exam 21: Budgeting

The capital expenditures budget details future plans for acquisition of fixed assets.

If Division Inc.expects to sell 200,000 units in the current year,desires ending inventory of 24,000 units,and has 22,000 units on hand as of the beginning of the year,the budgeted volume of production for the year is 202,000 units.

Once a static budget has been determined,it is changed regularly as the underlying activity changes.

Production and sales estimates for April are as follows: ​ The budgeted total sales for April is

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

Employees view budgeting more positively when goals are established for them by senior management.

When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company,the manager is experiencing

The cash payments expected for Finch Company in the month of May are

In preparing flexible budgets,the first step is to identify the fixed and variable components of the various costs and expenses being budgeted.

The budgeted direct materials purchases is normally computed as the sum of (1)the materials for production and (2)the desired ending inventory.

What is the budgeted units of production for February?

Which of the following budgets is not directly associated with the production budget?

To meet projected annual sales,Bluegill Manufacturers,Inc.needs to produce 75,000 machines for the year.The estimated January 1 inventory is 7,000 units,and the desired December 31 inventory is 12,000 units.What are projected sales units for the year?

After the sales budget is prepared,the production budget is normally prepared next.

Future Technologies projected sales of 35,000 computers for this year.The estimated January 1 inventory is 3,000 units,and the desired December 31 inventory is 9,000 units.What is the budgeted production (in units)for the year?

The total direct materials purchases (assuming no beginning or ending inventory of material)of Materials A and B required for August production is

A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting.

The number of pounds of Materials A and B required for August production is

Willow Valley's April sales forecast projects that 7,000 units will sell at a price of $10.50 per unit.The desired ending inventory is 30% higher than the beginning inventory,which was 1,000 units.Budgeted production in April would be

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Production and sales estimates for April are as follows: The budgeted total sales for April is