Exam 19: Introduction to Managerial Accounting and the Master Budget

Which of the following is NOT a characteristic of the budgeting process?

Which of the following budgets focuses on the income statement and its supporting schedules?

Caribbean Tool and Die Company's forecasted sales for April, May, June and July are $150 000, $225 000, $180 000, and $210 000, respectively. Sales are 50% cash and 50% credit with all accounts receivables collected in the month following the sale. What are the cash collections budgeted for June?

For a manufacturing business, which of the following would not be considered an inventoriable product cost?

Which of the following statements is TRUE about the operating budget?

Farmington Enterprises has budgeted sales for the months of September and October at $300 000 and $280 000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. What are the October cash collections from customers?

All of the following are examples of manufacturing overhead EXCEPT for:

Budget preparation is a part of the planning process.

Which of the following statements is INCORRECT?

Management is accountable to its employees in which of the following ways?

Which of the following best describes the term sensitivity analysis?

A company has prepared the operational budget and the cash budget and is now preparing the budgeted balance sheet. To provide the balance for the Cash account, which document should be used?

Lan Corporation had beginning inventory of $42 000 and expects cost of sales of $96 000 units during the month. Desired ending inventory is $31 000. How much inventory should Lan Corporation purchase?

Argyle Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Variable and fixed expenses are as follows: Variable: Power cost (40% of Sales) Miscellaneous expenses (5% of Sales) Fixed: Salary expense: $8 000 per month Rent expense: $5 000 per month Depreciation expense: $1 200 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1 000 per month How much is the total operating expense for January?

Managerial accounting is focused on which of the following objectives?

The capital expenditures budget is part of the operating budget.

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

Which of the following applies to goods that are partially completed?

Which of the following statements about budgeting is INCORRECT?

The following information has been provided by Buffalo Company: • Direct labour: $100 000 • Direct materials used: $40 000 • Direct materials purchased: $67 000 • Cost of goods manufactured: $199 000 • Ending work in process: $46 000 • Corporate headquarters' property rates: $6 000 • Manufacturing overhead: $79 000 How much was Buffalo's beginning work in process?