Exam 11: Budgeting, Management Control and Responsibility Accounting

Answer the following questions using the information below: Cathfree Inc.expects to sell 35 000 athletic uniforms for $70 each in 2018.Direct materials costs are $20,direct manufacturing labour is $8,and manufacturing overhead is $6 for each uniform.The following inventory levels apply to 2017: Beginning inventory Ending inventory Direct materials 12000 units 10000 units Work-in-process inventory 0 units 0 units Finished goods inventory 6000 units 5000 units -What is the amount budgeted for cost of goods sold in 2018?

Most costs can be easily controlled because they are under the sole influence of one manager.

Which of the following does budgeting NOT provide?

Maroochydore Corporation has budgeted sales of 20 000 units,target ending finished goods inventory of 3000 units,and beginning finished goods inventory of 2900 units.How many units should be produced next year?

A manager of a revenue centre is responsible for all of the following EXCEPT:

What is budgetary slack? What are the pros and cons of building slack into the budget from the point of view of (a)an employee and (b)a senior manager?

Computer-based financial planning models are mathematical statements of the interrelationships among operating activities,financial activities,and other factors that affect the budget.

To gain the benefits of budgeting,________ must understand and support the budget.

If a cost is considered controllable,it indicates that all aspects of the cost are under the control of the manager of the responsibility centre to which that cost is assigned.

Which of the following does the financial budget include?

Activity-based budgeting provides better decision-making information than budgeting based solely on output-based cost drivers (units produced,units sold,or revenues).

Answer the following questions using the information below: The following information pertains to the January operating budget for Brindabella Corporation,a retailer: Budgeted sales are $300 000 for January Collections of sales are 50% in the month of sale and 50% the next month Cost of goods sold averages 70% of sales Merchandise purchases total $250 000 in January Marketing costs are $3000 each month Distribution costs are $5000 each month Administrative costs are $10 000 each month -For January,budgeted net profit is:

Budgeting is a very effective tool to motivate managers to reduce carbon emissions.

Kaizen budgeting encourages small incremental changes,rather than major improvements.

Answer the following questions using the information below: The following information pertains to the January operating budget for Canberra Corporation. ∙ Budgeted sales for January $100 000 and for February $200 000. ∙ Collections for sales are 70% in the month of sale and 30% the next month. ∙ Gross margin is 30% of sales. ∙ Administrative costs are $10 000 each month. ∙ Beginning accounts receivable is $20 000. ∙ Beginning inventory is $14 000. ∙ Beginning accounts payable is $60 000.(All from inventory purchases. ) ∙ Purchases are paid in full the following month. ∙ Desired ending inventory is 20% of next month's cost of goods sold (COGS). -For January,budgeted net profit is:

A sales forecast is:

Which of the following does Kaizen budgeting involve?

A PRIMARY consideration in assigning a cost to a responsibility centre is:

Direct material purchases equal:

A regional manager of a restaurant chain in charge of finding additional locations for expansion is MOST likely responsible for a(n):