Question 1

Which of the following is the most common starting point in the information gathering process for budgeting?

Accepted Answer

A)  the personnel forecast 
B)  the sales forecast 
C)  the production forecast 
D)  the projected income statement 
A)  the personnel forecast 
B)  the sales forecast 
C)  the production forecast 
D)  the projected income statement

Question 2

Rydingsward, Inc., has done a cost analysis for its production of reflectors.The following activities and cost drivers have been developed:   
-What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

Accepted Answer

A)  $47,000 
B)  $43,000 
C)  $38,410,000 
D)  none of these 
A)  $47,000 
B)  $43,000 
C)  $38,410,000 
D)  none of these

Question 3

Marconi, Inc., a retailer of specialty paints, prepares a monthly master budget.Data for the September master budget are given below:
       Required:
Prepare a balance sheet, income statement, and cash budget for the month of September.

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 4

Gerald Company manufactures books.Manufacturing a book takes 10 units of A1 and 1 unit of A2.Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively.Beginning inventory is 4,000 units of A1 and 30 units of A2.The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. 
-How many units of A1 does Gerald Company expect to use in production during the second month?

Accepted Answer

A)  12,000 units 
B)  12,500 units 
C)  10,000 units 
D)  10,750 units 
A)  12,000 units 
B)  12,500 units 
C)  10,000 units 
D)  10,750 units

Question 5

Volume variances examine differences between

Accepted Answer

A)  the static budget and actual costs. 
B)  the flexible budget and static budget. 
C)  the static budget and the rolling budget. 
D)  none of these. 
A)  the static budget and actual costs. 
B)  the flexible budget and static budget. 
C)  the static budget and the rolling budget. 
D)  none of these.

Question 6

Discuss the features of an ideal budgetary process.

Accepted Answer

The ideal budgetary process does not exi

Question 7

Figure 8-2 Oriental Lamp Company manufactures lamps.The estimated number of lamp sales for the last three months of 2011 are as follows:
  Finished goods inventory at the end of September was 3,000 units.Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales.Oriental Lamp expects to sell the lamps for $25 each.January 2011 sales is projected at 16,000 lamps.
-Refer to Figure 8-2.Oriental Lamp Company manufactures lamps. How many lamps should be produced in October?

Accepted Answer

A)  10,000 lamps 
B)  14,000 lamps 
C)  9,500 lamps 
D)  10,500 lamps 
A)  10,000 lamps 
B)  14,000 lamps 
C)  9,500 lamps 
D)  10,500 lamps

Question 8

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below:
Armati, Inc., had the following budgeted data:
  The following actually occurred:
  
-Refer to Figure 8-8.The flexible budget for rent in 2011 is

Accepted Answer

A)  $100. 
B)  $200. 
C)  $2,900. 
D)  $2,950. 
A)  $100. 
B)  $200. 
C)  $2,900. 
D)  $2,950.

Question 9

When budgets are used to evaluate performance, which factor might NOT have a significant behavioral effect?

Accepted Answer

A)  concern for status 
B)  concern for financial matters 
C)  concern for career 
D)  concern for company profit 
A)  concern for status 
B)  concern for financial matters 
C)  concern for career 
D)  concern for company profit

Question 10

Denver 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 Denver Corporation for July is

Accepted Answer

A)  3,360 units. 
B)  4,640 units. 
C)  1,440 units. 
D)  5,440 units. 
A)  3,360 units. 
B)  4,640 units. 
C)  1,440 units. 
D)  5,440 units.

Question 11

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

Accepted Answer

A)  setups. 
B)  direct materials. 
C)  ordering. 
D)  inspections. 
A)  setups. 
B)  direct materials. 
C)  ordering. 
D)  inspections.

Question 12

Figure 8-5 The following forecasted sales pertain to Cordon Corporation:
  Collection pattern:
65 percent in month of sale
35 percent in month following sale
  Cordon Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales.
-Refer to Figure 8-5.How many dollars are expected to be collected in December?

Accepted Answer

A)  $30,500 
B)  $37,000 
C)  $26,500 
D)  $23,500 
A)  $30,500 
B)  $37,000 
C)  $26,500 
D)  $23,500

Question 13

The _______________ is responsible for directing and coordinating the overall budgeting process.

Accepted Answer

A)  budget committee 
B)  president 
C)  budget director 
D)  treasurer 
A)  budget committee 
B)  president 
C)  budget director 
D)  treasurer

Question 14

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below:
Armati, Inc., had the following budgeted data:
  The following actually occurred:
 
- Refer to Figure 8-8.The total flexible budgeted costs for 2011 are

Accepted Answer

A)  $10,560. 
B)  $13,460. 
C)  $13,510. 
D)  $15,220. 
A)  $10,560. 
B)  $13,460. 
C)  $13,510. 
D)  $15,220.

Question 15

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below:
Armati, Inc., had the following budgeted data:
  The following actually occurred:
  
-Refer to Figure 8-8.The total actual costs for 2011 were

Accepted Answer

A)  $13,550. 
B)  $10,650. 
C)  $13,600. 
D)  $13,510. 
A)  $13,550. 
B)  $10,650. 
C)  $13,600. 
D)  $13,510.

Question 16

Which of the following is a financial budget?

Accepted Answer

A)  cost of goods sold budget 
B)  budgeted balance sheet 
C)  marketing expense budget 
D)  production budget 
A)  cost of goods sold budget 
B)  budgeted balance sheet 
C)  marketing expense budget 
D)  production budget

Question 17

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data:
  
-What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?

Accepted Answer

A)  $-0- 
B)  $18,550 
C)  $1,000 
D)  $9,000 
A)  $-0- 
B)  $18,550 
C)  $1,000 
D)  $9,000

Question 18

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data:
 
- What are the budgeted costs for rent if 5,000 units were produced?

Accepted Answer

A)  $2,000 
B)  $100,000 
C)  $9,000 
D)  $45,000 
A)  $2,000 
B)  $100,000 
C)  $9,000 
D)  $45,000

Question 19

If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?

Accepted Answer

A)  $50 F 
B)  $200 U 
C)  $100 F 
D)  $150 U 
A)  $50 F 
B)  $200 U 
C)  $100 F 
D)  $150 U

Question 20

Van Gogh Inc.is constructing its marketing budget.  
Commissions are $3 per unit sold.Salesperson salaries are $100,000 per quarter.Depreciation is $25,000 per quarter.Travel is $10,000 per quarter.Advertising is $50,000 in the first quarter; $40,000 in the second quarter; $60,000 in the third quarter; and $55,000 in the fourth quarter.What is the budgeted marketing expense for the third quarter?

Accepted Answer

A)  $795,000 
B)  $735,000 
C)  $360,000 
D)  $345,000 
A)  $795,000 
B)  $735,000 
C)  $360,000 
D)  $345,000

Which of the following is the most common starting point in the information gathering process for budgeting?

Rydingsward, Inc., has done a cost analysis for its production of reflectors.The following activities and cost drivers have been developed: -What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

Marconi, Inc., a retailer of specialty paints, prepares a monthly master budget.Data for the September master budget are given below: Required: Prepare a balance sheet, income statement, and cash budget for the month of September.

Volume variances examine differences between

Discuss the features of an ideal budgetary process.

When budgets are used to evaluate performance, which factor might NOT have a significant behavioral effect?

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

The _______________ is responsible for directing and coordinating the overall budgeting process.

Which of the following is a financial budget?

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data: -What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data: - What are the budgeted costs for rent if 5,000 units were produced?

If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 8: Budgeting for Planning and Control

Which of the following is the most common starting point in the information gathering process for budgeting?

Rydingsward, Inc., has done a cost analysis for its production of reflectors.The following activities and cost drivers have been developed: -What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

Marconi, Inc., a retailer of specialty paints, prepares a monthly master budget.Data for the September master budget are given below: Required: Prepare a balance sheet, income statement, and cash budget for the month of September.

Volume variances examine differences between

Discuss the features of an ideal budgetary process.

When budgets are used to evaluate performance, which factor might NOT have a significant behavioral effect?

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

The _______________ is responsible for directing and coordinating the overall budgeting process.

Which of the following is a financial budget?

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data: -What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data: - What are the budgeted costs for rent if 5,000 units were produced?

If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters