Question 1

Examples of ________________ include job enrichment, increased responsibility and autonomy, and recognition programs.

Accepted Answer

nonmonetar

Question 2

Excellent Company manufactures lamps.The estimated number of lamp sales for three months are as follows:   Finished goods inventory at the end of July was 3,600 units.Ending finished goods inventory is budgeted as 30% of the next month's sales.Excellent expects to sell the lamps for $30 each.In November, sales are projected at 18,000 lamps.How many lamps should be produced in September?

Accepted Answer

A)  11,000 lamps 
B)  10,500 lamps 
C)  14,000 lamps 
D)  15,700 lamps 
A)  11,000 lamps 
B)  10,500 lamps 
C)  14,000 lamps 
D)  15,700 lamps

Question 3

An after-the-fact flexible budget:

Accepted Answer

A)  is useful for control. 
B)  is used to provide the expected cost for a range of activity levels. 
C)  is used only when the actual level of activity is the same as the static budget level of activity. 
D)  is the key to receiving frequent feedback from customers. 
E)  All of these are correct. 
A)  is useful for control. 
B)  is used to provide the expected cost for a range of activity levels. 
C)  is used only when the actual level of activity is the same as the static budget level of activity. 
D)  is the key to receiving frequent feedback from customers. 
E)  All of these are correct.

Question 4

Budgeted costs change because total variable costs go up as output increases, therefore flexible budgets are sometimes referred to as _______________.

Accepted Answer

The answer of Budgeted costs change because total variable costs...

Question 5

Montgomery Company has developed the following flexible budget formulas for its four overhead items: 
   
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however, this year 19,000 units were produced with the following actual costs:

-  Using an after-the-fact flexible budget, calculate the variance for power.

Accepted Answer

A)  $1,000 F 
B)  $1,010 U 
C)  $3,000 U 
D)  $1,010 F 
E)  None of these. 
A)  $1,000 F 
B)  $1,010 U 
C)  $3,000 U 
D)  $1,010 F 
E)  None of these.

Question 6

Which of the following statements is true?

Accepted Answer

A)  The production budget is the first budget to be prepared in the master budget. 
B)  The cash budget is prepared before the direct materials purchases budget. 
C)  The budgeted balance sheet is prepared after the cash budget. 
D)  Service firms need not prepare a master budget. 
E)  The cost of goods sold budget is prepared before the direct labor and overhead budgets. 
A)  The production budget is the first budget to be prepared in the master budget. 
B)  The cash budget is prepared before the direct materials purchases budget. 
C)  The budgeted balance sheet is prepared after the cash budget. 
D)  Service firms need not prepare a master budget. 
E)  The cost of goods sold budget is prepared before the direct labor and overhead budgets.

Question 7

Synergy Inc.produces plastic grocery bags.Synergy has developed a static budget for the month of July based on 10,000 direct labor hours.During the quarter, the actual activity was 12,000 direct labor hours.Data for July are summarized as follows:

-
What is the flexible budget amount for July?

Accepted Answer

A)  $142,000 
B)  $146,200 
C)  $171,000 
D)  $165,000 
E)  None of these. 
A)  $142,000 
B)  $146,200 
C)  $171,000 
D)  $165,000 
E)  None of these.

Question 8

The budget that describes how many units must be produced in order to meet sales needs and ending inventory objectives is the

Accepted Answer

A)  production budget. 
B)  direct materials purchases budget. 
C)  cash budget. 
D)  budgeted income statement. 
E)  none of these. 
A)  production budget. 
B)  direct materials purchases budget. 
C)  cash budget. 
D)  budgeted income statement. 
E)  none of these.

Question 9

Salaries expense, advertising expense and depreciation expense would be included in the ______________________ budget.

Accepted Answer

selling an

Question 10

Looking ahead to see what actions should be taken to realize particular goals is:

Accepted Answer

A)  planning. 
B)  directing. 
C)  decision making. 
D)  coordinating. 
E)  controlling. 
A)  planning. 
B)  directing. 
C)  decision making. 
D)  coordinating. 
E)  controlling.

Question 11

The ________________ plots a direction for an organization's future activities and operations; it generally covers at least five years.

Accepted Answer

The answer of The ________________ plots a direction for an...

Question 12

Identify each item as a component of the production budget or the direct materials purchases budget.
-beginning inventory of materials

Accepted Answer

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

Question 13

Budgeted operating income includes

Accepted Answer

A)  budgeted interest expense. 
B)  budgeted income taxes. 
C)  budgeted cost of goods sold. 
D)  budgeted net income. 
E)  none of these. 
A)  budgeted interest expense. 
B)  budgeted income taxes. 
C)  budgeted cost of goods sold. 
D)  budgeted net income. 
E)  none of these.

Question 14

There are as many direct materials purchases budgets as there are products.

Accepted Answer

A) True 
 B)False

Question 15

Bickford Company plans to sell 135,000 units in November and 180,000 units in December.Bickford's policy is that 10% of the following month's sales must be in ending inventory.On November 1, there were 14,000 units in inventory. It takes 30 minutes of direct labor time to make one unit.Direct labor wages average $17 per hour.Variable overhead is applied at the rate of $5 per direct labor hour.Fixed overhead is budgeted at $56,500 per month.What is the direct labor cost budgeted for November?

Accepted Answer

A)  $1,181,500 
B)  $950,600 
C)  $707,600 
D)  $2,152,000 
E)  $622,800 
A)  $1,181,500 
B)  $950,600 
C)  $707,600 
D)  $2,152,000 
E)  $622,800

Question 16

A static budget compares actual cost with budgeted costs.

Accepted Answer

A) True 
 B)False

Question 17

Wright Inc.produces leather purses.Wright has developed a static budget for the first quarter based on 25,000 direct labor hours.During the quarter, the actual activity was 30,000 direct labor hours.Data for the first quarter are summarized as follows: ​
  Comparing the static budget to the actual outcomes, we can say:

Accepted Answer

A)  direct materials variance is favorable. 
B)  direct labor variance is unfavorable. 
C)  the comparison is useful for assessing managerial efficiency. 
D)  a flexible budget should be used for assessing efficiency. 
E)  All of these are correct. 
A)  direct materials variance is favorable. 
B)  direct labor variance is unfavorable. 
C)  the comparison is useful for assessing managerial efficiency. 
D)  a flexible budget should be used for assessing efficiency. 
E)  All of these are correct.

Question 18

The ____________________ budget gives expected outcomes for a range of activity levels.

Accepted Answer

The answer of The ____________________ budget gives expected outcomes for...

Question 19

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 budgeted amount of component A to be purchased in May?

Accepted Answer

A)  41,760 
B)  142,800 
C)  154,560 
D)  164,600 
E)  66,600 
A)  41,760 
B)  142,800 
C)  154,560 
D)  164,600 
E)  66,600

Question 20

__________________ is looking ahead to see what actions should be taken to realize particular goals.

Accepted Answer

The answer of __________________ is looking ahead to see what...

Examples of ________________ include job enrichment, increased responsibility and autonomy, and recognition programs.

An after-the-fact flexible budget:

Budgeted costs change because total variable costs go up as output increases, therefore flexible budgets are sometimes referred to as _______________.

Which of the following statements is true?

Synergy Inc.produces plastic grocery bags.Synergy has developed a static budget for the month of July based on 10,000 direct labor hours.During the quarter, the actual activity was 12,000 direct labor hours.Data for July are summarized as follows: - What is the flexible budget amount for July?

The budget that describes how many units must be produced in order to meet sales needs and ending inventory objectives is the

Salaries expense, advertising expense and depreciation expense would be included in the ______________________ budget.

Looking ahead to see what actions should be taken to realize particular goals is:

The ________________ plots a direction for an organization's future activities and operations; it generally covers at least five years.

Identify each item as a component of the production budget or the direct materials purchases budget. -beginning inventory of materials

Budgeted operating income includes

There are as many direct materials purchases budgets as there are products.

A static budget compares actual cost with budgeted costs.

The ____________________ budget gives expected outcomes for a range of activity levels.

__________________ is looking ahead to see what actions should be taken to realize particular goals.

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

Examples of ________________ include job enrichment, increased responsibility and autonomy, and recognition programs.

An after-the-fact flexible budget:

Budgeted costs change because total variable costs go up as output increases, therefore flexible budgets are sometimes referred to as _______________.

Which of the following statements is true?

Synergy Inc.produces plastic grocery bags.Synergy has developed a static budget for the month of July based on 10,000 direct labor hours.During the quarter, the actual activity was 12,000 direct labor hours.Data for July are summarized as follows: - What is the flexible budget amount for July?

The budget that describes how many units must be produced in order to meet sales needs and ending inventory objectives is the

Salaries expense, advertising expense and depreciation expense would be included in the ______________________ budget.

Looking ahead to see what actions should be taken to realize particular goals is:

The ________________ plots a direction for an organization's future activities and operations; it generally covers at least five years.

Identify each item as a component of the production budget or the direct materials purchases budget. -beginning inventory of materials

Budgeted operating income includes

There are as many direct materials purchases budgets as there are products.

A static budget compares actual cost with budgeted costs.

The ____________________ budget gives expected outcomes for a range of activity levels.

__________________ is looking ahead to see what actions should be taken to realize particular goals.

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