Question 1

Budgets assist managers in all the following aspects of management except

Accepted Answer

A) planning. 
B) controlling. 
C) leading. 
D) evaluating. 
A) planning. 
B) controlling. 
C) leading. 
D) evaluating.

Question 2

Berry Products Company manufactures and sells a single product.Each unit requires three feet of tubing.Berry's budgeted production is as follows:   Berry budgets monthly ending inventories to be equal to 20% of the following month's production needs.The January beginning inventory meets this requirement.The tubing costs $0.80 per foot.
Required:
Prepare the direct material purchases budget for tubing for the first quarter.

Accepted Answer

The answer of Berry Products Company manufactures and sells a...

Question 3

Richardson Company has provided you with the following numbers pulled from various budgets related to January 2020 activity:   Required:
Prepare a pro-forma income statement for Richardson Company

Accepted Answer

The answer of Richardson Company has provided you with the...

Question 4

The first section of the cash budget reconciles the cash available to the borrowing required to meet the minimum cash balance.

Accepted Answer

A) True 
 B)False

Question 5

An imposed budget

Accepted Answer

A) tends to elicit more commitment to the budget from employees since they have had some input into its creation. 
B) begins at the lowest levels of management and filters up through the organization. 
C) is the least efficient method of budget preparation. 
D) involves the fewest number of people in the budgeting process. 
A) tends to elicit more commitment to the budget from employees since they have had some input into its creation. 
B) begins at the lowest levels of management and filters up through the organization. 
C) is the least efficient method of budget preparation. 
D) involves the fewest number of people in the budgeting process.

Question 6

Indicate whether the following items are characteristics of imposed budgeting or participative budgeting.

Accepted Answer

The answer of Indicate whether the following items are characteristics...

Question 7

The formula for the production budget is Budgeted Sales + Budgeted Beginning Inventory - Budgeted Ending Inventory = Budgeted Production.

Accepted Answer

A) True 
 B)False

Question 8

Danny's Delights is a wholesale bakery.Danny makes a variety of baked goods which he sells to restaurants and grocery stores.His best-selling item is a peanut butter cookie.The recipe calls for 1 cup of peanut butter, 1 cup of sugar and 1 egg.Each recipe makes a batch of one dozen cookies.Danny's standard direct materials cost for batch of cookies is $0.90 for peanut butter, $0.15 for sugar and $0.10 for an egg.In addition, the cookies are packaged by the dozen in cardboard containers costing $0.25 each.One batch of cookies requires 4 minutes preparation time, 8 minutes of cooking time, and 3 minutes of packaging time.The standard wage rate is $15 per hour.Overhead is applied at 50% of direct labor cost.
Required:
Calculate the standard cost for a batch (1 dozen) of peanut butter cookies.

Accepted Answer

The answer of Danny's Delights is a wholesale bakery.Danny makes...

Question 9

Tanger Products plans to produce 10,000 units in January.Each unit requires 3 pounds of plastic, which costs $2 per pound.What standard material cost would the company use to plan for production?

Accepted Answer

A) $2 
B) $6 
C) $3,333 
D) $5,000 
A) $2 
B) $6 
C) $3,333 
D) $5,000

Question 10

The basic managerial functions that help managers ensure that enough cash is available to run the business is the function of

Accepted Answer

A) planning. 
B) controlling. 
C) evaluation. 
D) decision making. 
A) planning. 
B) controlling. 
C) evaluation. 
D) decision making.

Question 11

Which of the following items would most likely differ on the cash budget and the budgeted income statement?

Accepted Answer

A) Insurance expense 
B) Advertising expense 
C) Bad debt expense 
D) Supplies expense 
A) Insurance expense 
B) Advertising expense 
C) Bad debt expense 
D) Supplies expense

Question 12

Quail Industries is preparing its cash budget for the third quarter of the current year.Sales for the third quarter are budgeted at $696,000 ($232,000 per month).Sales are 80% cash, with the remaining 20% on credit which is collected in the month following the month of sale.On June 30, the cash balance is $38,400, and the Accounts Receivable (all related to June sales) balance is $40,800.Operating expenses for the quarter are budgeted at $371,200, which includes $14,400 of depreciation.Cash expenses are paid in the month incurred.Cash purchases for merchandise inventory are budgeted at $313,600 for the quarter.To prepare for the busy fourth quarter, Quail's desired cash balance on September 30 is $120,000.How much financing will the company need at the end of the third quarter?

Accepted Answer

A) $29,600 
B) $61,600 
C) $116,800 
D) $15,200 
A) $29,600 
B) $61,600 
C) $116,800 
D) $15,200

Question 13

The calculation for the standard direct labor cost is

Accepted Answer

A) standard wage rate per direct labor hour × actual quantity of direct labor hours. 
B) standard wage rate per direct labor hour × standard quantity of direct labor hours. 
C) actual wage rate per direct labor hour × standard quantity of direct labor hours. 
D) actual wage rate per direct labor hour × actual quantity of direct labor hours. 
A) standard wage rate per direct labor hour × actual quantity of direct labor hours. 
B) standard wage rate per direct labor hour × standard quantity of direct labor hours. 
C) actual wage rate per direct labor hour × standard quantity of direct labor hours. 
D) actual wage rate per direct labor hour × actual quantity of direct labor hours.

Question 14

The standard price of a product is comprised of several components including cost and quantity.
Required:
List the six components and explain what each includes.

Accepted Answer

Price standards are the expected cost of

Question 15

A bottom-up approach to budgeting is circular while a top-down approach is linear.

Accepted Answer

A) True 
 B)False

Question 16

The position responsible for negotiating a volume discount is the

Accepted Answer

A) purchasing agent. 
B) production manager. 
C) accounts payable supervisor. 
D) corporate controller. 
A) purchasing agent. 
B) production manager. 
C) accounts payable supervisor. 
D) corporate controller.

Question 17

Mounds Company has provided you with the following sales data.   The company requires that 5% of the next month's sales be on hand at the end of each month.Budgeted production for October is

Accepted Answer

A) 30,000. 
B) 31,000. 
C) 31,500. 
D) 35,000. 
A) 30,000. 
B) 31,000. 
C) 31,500. 
D) 35,000.

Question 18

Julie Finn is preparing the materials purchases budget for the first quarter.The production manager has provided the following production budget information: January - 60,000 units, February - 55,000 units, March - 50,000 units.Each unit requires 5 gallons of direct materials, and Julie wants to maintain an ending inventory equal to 15% of the next month's production needs.How many gallons will Julie budget to purchase in February?

Accepted Answer

A) 271,250 
B) 275,000 
C) 282,500 
D) 312,500 
A) 271,250 
B) 275,000 
C) 282,500 
D) 312,500

Question 19

Budgets assist managers in the areas of planning, controlling, evaluating, and decision-making.

Accepted Answer

A) True 
 B)False

Question 20

Assume your friend is watching you prepare the master budget as part of your accounting homework.She notices that the sales budget affects both the budgeted income statement and the cash budget, but not by the same amount.Explain why the effect is not the same on the two budgets.

Accepted Answer

The effect is not the same because of a

Budgets assist managers in all the following aspects of management except

Richardson Company has provided you with the following numbers pulled from various budgets related to January 2020 activity: Required: Prepare a pro-forma income statement for Richardson Company

The first section of the cash budget reconciles the cash available to the borrowing required to meet the minimum cash balance.

An imposed budget

Indicate whether the following items are characteristics of imposed budgeting or participative budgeting.

The formula for the production budget is Budgeted Sales + Budgeted Beginning Inventory - Budgeted Ending Inventory = Budgeted Production.

Tanger Products plans to produce 10,000 units in January.Each unit requires 3 pounds of plastic, which costs $2 per pound.What standard material cost would the company use to plan for production?

The basic managerial functions that help managers ensure that enough cash is available to run the business is the function of

Which of the following items would most likely differ on the cash budget and the budgeted income statement?

The calculation for the standard direct labor cost is

The standard price of a product is comprised of several components including cost and quantity. Required: List the six components and explain what each includes.

A bottom-up approach to budgeting is circular while a top-down approach is linear.

The position responsible for negotiating a volume discount is the

Mounds Company has provided you with the following sales data. The company requires that 5% of the next month's sales be on hand at the end of each month.Budgeted production for October is

Budgets assist managers in the areas of planning, controlling, evaluating, and decision-making.

Assume your friend is watching you prepare the master budget as part of your accounting homework.She notices that the sales budget affects both the budgeted income statement and the cash budget, but not by the same amount.Explain why the effect is not the same on the two budgets.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Costvolumeprofit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity-Based Management

Using Accounting Information to Make Managerial Decisions

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralization and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

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Exam 5: Planning and Forecasting in a Manufacturing Setting

Budgets assist managers in all the following aspects of management except

Richardson Company has provided you with the following numbers pulled from various budgets related to January 2020 activity: Required: Prepare a pro-forma income statement for Richardson Company

The first section of the cash budget reconciles the cash available to the borrowing required to meet the minimum cash balance.

An imposed budget

Indicate whether the following items are characteristics of imposed budgeting or participative budgeting.

The formula for the production budget is Budgeted Sales + Budgeted Beginning Inventory - Budgeted Ending Inventory = Budgeted Production.

Tanger Products plans to produce 10,000 units in January.Each unit requires 3 pounds of plastic, which costs $2 per pound.What standard material cost would the company use to plan for production?

The basic managerial functions that help managers ensure that enough cash is available to run the business is the function of

Which of the following items would most likely differ on the cash budget and the budgeted income statement?

The calculation for the standard direct labor cost is

The standard price of a product is comprised of several components including cost and quantity. Required: List the six components and explain what each includes.

A bottom-up approach to budgeting is circular while a top-down approach is linear.

The position responsible for negotiating a volume discount is the

Mounds Company has provided you with the following sales data. The company requires that 5% of the next month's sales be on hand at the end of each month.Budgeted production for October is

Budgets assist managers in the areas of planning, controlling, evaluating, and decision-making.

Assume your friend is watching you prepare the master budget as part of your accounting homework.She notices that the sales budget affects both the budgeted income statement and the cash budget, but not by the same amount.Explain why the effect is not the same on the two budgets.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Costvolumeprofit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity-Based Management

Using Accounting Information to Make Managerial Decisions

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralization and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

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