Exam 8: Budgeting for Planning and Control Key

Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: What is the budgeted inspection cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

The process of setting standards, receiving feedback, and taking corrective action whenever performance deviates from standards is called __________ .

The __________ budget shows the projected sales and prices.

The budget director is responsible for directing and coordinating the budgeting process.

Mikhail Corporation has the following sales forecasts for the first three months of 2014: Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month. Minimum cash balance is $20,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). How much cash would be collected in March from sales?

Controllable costs are those that a manager

Figure 8-4 Discus Productions needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 60 percent in the month of sale, 30 percent in the month after the sale, and the remaining 10 percent two months after the sale. Sales for the quarter are projected as follows: April, $120,000; May, $100,000; and June, $80,000. Accounts receivable on March 31 were $60,000. Refer to Figure 8-4. Discus Productions would expect to have an accounts receivable balance on June 30 of

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

Refer to Figure 8-2. How many lamps should be produced in October?

Which of the following is NOT a potential disadvantage of participative budgeting?

Wheeling Company produces and sells bikes. It expects to sell 20,000 bikes in April 2014 and had 1,200 bikes in finished goods inventory at the end of March 2014. Wheeling Company would like to complete operations in April with at least 1,500 completed bikes in inventory. The bikes sell for $100 each. What would be the total sales for April 2014?

Colorado Corporation has the following sales forecast for the next quarter: July, 4,000 units; August, 4,800 units; September, 5,600 units Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of next month's planned sales. The planned production for Colorado Corporation for July is

A continuous budget is a moving twelve-month budget.

The process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance.

Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders What is the budget variance for machining in an activity-based performance report?

The quantitative expression of a plan stated in either physical or financial terms or both is called a:

Quicksand Corporation has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000. The ending accounts payable for Quicksand Corporation should be

A functional-based approach to budgeting compares costs for functional line items such as

When the reaction to a budget is negative, resulting in managerial behavior that is negative for the organization, the resulting behavior is known as

Which of the following statement is correct regarding a continuous budget?