Question 1

Which of the following is NOT a benefit of budgeting?

Accepted Answer

A) It promotes efficiency. 
B) It deters waste. 
C) It is a basis for performance evaluation. 
D) It assures the company that management will perform at a particular operational level. 
A) It promotes efficiency. 
B) It deters waste. 
C) It is a basis for performance evaluation. 
D) It assures the company that management will perform at a particular operational level.

Question 2

Why might the number of units in the sales budget and the production budget differ?

Accepted Answer

A) The finished goods inventory levels changed. 
B) The direct material inventory levels changed. 
C) Excess overhead costs were incurred. 
D) Customers returned merchandise. 
A) The finished goods inventory levels changed. 
B) The direct material inventory levels changed. 
C) Excess overhead costs were incurred. 
D) Customers returned merchandise.

Question 3

Operating budgets must be completed before the financial budgets can be prepared.

Accepted Answer

A) True 
 B)False

Question 4

What might a very conservative sales budget cause?

Accepted Answer

A) a decrease in selling prices 
B) a shortage of inventories 
C) increased sales during the year 
D) overproduction of goods 
A) a decrease in selling prices 
B) a shortage of inventories 
C) increased sales during the year 
D) overproduction of goods

Question 5

The flow of input data for budgeting should be from the lowest levels of responsibility to the highest level.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following is a source of information used to prepare the budgeted income statement?

Accepted Answer

A) cash budget 
B) budgeted balance sheet 
C) capital expenditures budget 
D) selling and administrative expense budget 
A) cash budget 
B) budgeted balance sheet 
C) capital expenditures budget 
D) selling and administrative expense budget

Which of the following is NOT a benefit of budgeting?

Why might the number of units in the sales budget and the production budget differ?

Operating budgets must be completed before the financial budgets can be prepared.

What might a very conservative sales budget cause?

The flow of input data for budgeting should be from the lowest levels of responsibility to the highest level.

Which one of the following is a source of information used to prepare the budgeted income statement?

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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Exam 10: Budgetary Planning

Which of the following is NOT a benefit of budgeting?

Why might the number of units in the sales budget and the production budget differ?

Operating budgets must be completed before the financial budgets can be prepared.

What might a very conservative sales budget cause?

The flow of input data for budgeting should be from the lowest levels of responsibility to the highest level.

Which one of the following is a source of information used to prepare the budgeted income statement?

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters