Question 1

Assume that the expectations on the static budget were met.We can conclude that

Accepted Answer

A)  the static budget was ill conceived. 
B)  the effectiveness of the manager is not in question. 
C)  the manager is very efficient. 
D)  there is no need for a flexible budget. 
E)  None of these. 
A)  the static budget was ill conceived. 
B)  the effectiveness of the manager is not in question. 
C)  the manager is very efficient. 
D)  there is no need for a flexible budget. 
E)  None of these.

Question 2

A difference between the actual amount and the flexible budget amount is known as the ____________________.

Accepted Answer

flexible b

Question 3

A _______________ is a budget created in advance that is based on a particular level of activity.

Accepted Answer

The answer of A _______________ is a budget created in...

Question 4

The following forecasted sales pertain to Micah Company: Collection pattern:
60% in month of sale
40% in month following the sale
  The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales.How many units are expected to be produced in April?

Accepted Answer

A)  21,000 units 
B)  19,000 units 
C)  25,000 units 
D)  20,000 units 
A)  21,000 units 
B)  19,000 units 
C)  25,000 units 
D)  20,000 units

Question 5

Saphire Company budgeted the following production in units for the second quarter of the year: ​
​
  Each unit requires four pounds of raw material.Saphire's policy is to have 30% of the following month's production needs for materials in inventory.This policy was met in March.Desired ending inventory for April in pounds equals:

Accepted Answer

A)  45,600. 
B)  11,400. 
C)  10.500. 
D)  38,300. 
E)  54,000. 
A)  45,600. 
B)  11,400. 
C)  10.500. 
D)  38,300. 
E)  54,000.

Question 6

Identify each item as either part of the operating budget or the financial budget.
-budgeted capital expenditures

Accepted Answer

A) Operating Budget 
B) Financial Budget 
A) Operating Budget 
B) Financial Budget

Question 7

Identify each item as either part of the operating budget or the financial budget.
-cash budget

Accepted Answer

A) Operating Budget 
B) Financial Budget 
A) Operating Budget 
B) Financial Budget

Question 8

Identify each item as a component of the production budget or the direct materials purchases budget.
-sales in units

Accepted Answer

A) production budget 
B) direct materials purchases budget 
A) production budget 
B) direct materials purchases budget

Question 9

The controller of the company usually serves as the __________________.

Accepted Answer

The answer of The controller of the company usually serves...

Question 10

Which of the following is true of a static budget?

Accepted Answer

A)  It is considered a good choice for benchmarks in preparing a performance report. 
B)  It divides costs into those that vary with units of production and those that are fixed with respect to unit-level drivers. 
C)  It provides a measure of the efficiency of a manager. 
D)  It provides expected cost for a given level of activity. 
E)  None of these are correct. 
A)  It is considered a good choice for benchmarks in preparing a performance report. 
B)  It divides costs into those that vary with units of production and those that are fixed with respect to unit-level drivers. 
C)  It provides a measure of the efficiency of a manager. 
D)  It provides expected cost for a given level of activity. 
E)  None of these are correct.

Question 11

Connor Company produces speaker systems for cars.Estimated sales (in units) in January are 40,000; in February 37,000; and in March 34,000.Each unit is priced at $60.Connor wants to have 35% of the following month's sales in ending inventory.That requirement was met on January 1. Each speaker system requires 3 boxes and 15 yards of wire.Boxes cost $4 each and wire is $0.60 per yard.Connor wants to have 20% of the following month's production needs in ending raw materials inventory.On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory.
- How many units does Connor expect to produce in February?

Accepted Answer

A)  25,700 
B)  30,500 
C)  23,750 
D)  35,950 
E)  25,000 
A)  25,700 
B)  30,500 
C)  23,750 
D)  35,950 
E)  25,000

Question 12

Which budget should be used to determine managerial effectiveness?

Accepted Answer

A)  before-the-fact flexible budget 
B)  after-the-fact flexible budget 
C)  static budget 
D)  financial budget 
E)  cash budget 
A)  before-the-fact flexible budget 
B)  after-the-fact flexible budget 
C)  static budget 
D)  financial budget 
E)  cash budget

Question 13

Sully Company provided the following information for last month. ?
 
- There were no beginning and ending inventories.What is Sully's cost of goods sold per unit?

Accepted Answer

A)  $12.60 
B)  $8.87 
C)  $10.00 
D)  $12.50 
E)  $16.60 
A)  $12.60 
B)  $8.87 
C)  $10.00 
D)  $12.50 
E)  $16.60

Question 14

The first budget to be prepared is the sales budget.

Accepted Answer

A) True 
 B)False

Question 15

___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.

Accepted Answer

The answer of ___________________ exists when a manager deliberately underestimates...

Question 16

Kenner Company produces two products: SR200 and TX500.Budgeted sales for four months are as follows: 
  Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory.On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.
TX500 requires 6 units of component A.(SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1.Kenner wants to have 20% of the following month's production needs in inventory for Component A.
- What is the desired ending inventory of component A for May?

Accepted Answer

A)  86,000 
B)  180,000 
C)  58,500 
D)  41,760 
E)  30,000 
A)  86,000 
B)  180,000 
C)  58,500 
D)  41,760 
E)  30,000

Question 17

Atlas Company plans to sell 145,000 units in November and 190,000 units in December.Atlas's policy is that 15% of the following month's sales must be in ending inventory.On November 1, there were 21,750 units in inventory. It takes 35 minutes of direct labor time to make one unit.Direct labor wages average $19 per hour.Variable overhead is applied at the rate of $7 per direct labor hour.Fixed overhead is budgeted at $60,500 per month.What is the budgeted production in units for November?

Accepted Answer

A)  100,000 units 
B)  140,000 units 
C)  121,000 units 
D)  125,600 units 
E)  151,750 units 
A)  100,000 units 
B)  140,000 units 
C)  121,000 units 
D)  125,600 units 
E)  151,750 units

Question 18

Which of the following budgets are needed to calculate a budgeted unit cost?

Accepted Answer

A)  Direct materials purchases budget 
B)  Direct labor budget 
C)  Overhead budget 
D)  Direct materials purchases budget and overhead budget 
E)  Direct materials purchases budget, direct labor budget, and overhead budget 
A)  Direct materials purchases budget 
B)  Direct labor budget 
C)  Overhead budget 
D)  Direct materials purchases budget and overhead budget 
E)  Direct materials purchases budget, direct labor budget, and overhead budget

Question 19

Which of the following is not true?

Accepted Answer

A)  The sales forecast is done before the sales budget. 
B)  The master budget is the comprehensive plan for the organization as a whole. 
C)  The production budget is prepared in units and dollars. 
D)  One approach to forecasting sales is the bottom-up approach. 
E)  In creating the sales forecast, outside factors such as the state of the economy, should be considered. 
A)  The sales forecast is done before the sales budget. 
B)  The master budget is the comprehensive plan for the organization as a whole. 
C)  The production budget is prepared in units and dollars. 
D)  One approach to forecasting sales is the bottom-up approach. 
E)  In creating the sales forecast, outside factors such as the state of the economy, should be considered.

Question 20

In budgeting direct labor hours for the coming year, it is important to

Accepted Answer

A)  multiply production in units by the direct labor hours per unit. 
B)  divide production in units by the direct labor hours per unit. 
C)  subtract production in units from the direct labor hours per unit. 
D)  subtract direct labor hours per unit from production in units. 
E)  multiply production in units by the labor wage rate. 
A)  multiply production in units by the direct labor hours per unit. 
B)  divide production in units by the direct labor hours per unit. 
C)  subtract production in units from the direct labor hours per unit. 
D)  subtract direct labor hours per unit from production in units. 
E)  multiply production in units by the labor wage rate.

Assume that the expectations on the static budget were met.We can conclude that

A difference between the actual amount and the flexible budget amount is known as the ____________________.

A _______________ is a budget created in advance that is based on a particular level of activity.

Identify each item as either part of the operating budget or the financial budget. -budgeted capital expenditures

Identify each item as either part of the operating budget or the financial budget. -cash budget

Identify each item as a component of the production budget or the direct materials purchases budget. -sales in units

The controller of the company usually serves as the __________________.

Which of the following is true of a static budget?

Which budget should be used to determine managerial effectiveness?

Sully Company provided the following information for last month. ? - There were no beginning and ending inventories.What is Sully's cost of goods sold per unit?

The first budget to be prepared is the sales budget.

___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.

Which of the following budgets are needed to calculate a budgeted unit cost?

Which of the following is not true?

In budgeting direct labor hours for the coming year, it is important to

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 9: Profit Planning and Flexible Budgets

Assume that the expectations on the static budget were met.We can conclude that

A difference between the actual amount and the flexible budget amount is known as the ____________________.

A _______________ is a budget created in advance that is based on a particular level of activity.

Identify each item as either part of the operating budget or the financial budget. -budgeted capital expenditures

Identify each item as either part of the operating budget or the financial budget. -cash budget

Identify each item as a component of the production budget or the direct materials purchases budget. -sales in units

The controller of the company usually serves as the __________________.

Which of the following is true of a static budget?

Which budget should be used to determine managerial effectiveness?

Sully Company provided the following information for last month. ? - There were no beginning and ending inventories.What is Sully's cost of goods sold per unit?

The first budget to be prepared is the sales budget.

___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.

Which of the following budgets are needed to calculate a budgeted unit cost?

Which of the following is not true?

In budgeting direct labor hours for the coming year, it is important to

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters