Exam 19: Introduction to Managerial Accounting and the Master Budget

Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.

The following information was obtained from Fizz Company: Advertising costs \ 10,800 Indirect labour 7000 CEO's salary 47,000 Direct labour 60,000 Indirect materials 6500 Direct materials used 41,000 Factory utilities 540 Factory janitorial costs 3000 Manufacturing equipment depreciation 2000 Delivery vehicle depreciation 1120 Administrative wages and salaries 31,900 How much were Fizz's period costs?

Repair and maintenance costs for factory equipment are inventoriable product costs.

On 30 June 2017,Alpha Company's cash balance is $4,000.Alpha is now preparing its cash budget for the third quarter of 2017.The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as on 30 September would be:

The wages and benefits of the sales staff are inventoriable product costs.

Accounting standards require companies to treat inventoriable product costs as an asset until the product is sold.

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

The budgeted "Cash payments for purchases" must be completed before the "Inventory,Purchases and Cost of sales budget" can be prepared.

Which of the following would probably be considered an indirect material cost in a bakery?

Barricades Company provided the following information for the year 2017: Beginning balance -work in process inventory \ 27,000 Ending balance - work in process inventory 57,000 Beginning balance - raw materials inventory 87,000 Ending balance - raw materials inventory 61,000 Purchases - raw materials 359,000 Direct labour 471,000 Indirect materials 47,000 Indirect labour 19,000 Depreciation on factory plant \& equipment 25,000 Plant electricity, gas \& insurance 272,000 What was the total manufacturing costs incurred during the year 2017?

Which of the following describes the operating expenses budget?

Chaterlain Company is preparing its budget for the third quarter.The cash balance on 30 June was $34,000.Additional budgeted data is provided here: Jul Aug Sep Cash collections \ 51,000 \ 56,000 \ 53,000 Cash payments Purchases of inventory 22,000 23,000 21,000 Operating expenses 32,000 26,000 34,000 Capital expenditures 10,000 5000 5000 What amount should be shown in the cash budget for the cash balance at the end of July?

Which of the following describes the sales budget?

A goal of the budgeting process is to assist managers with coordinating and implementing the business plan.

During the past century,many developed economies have shifted their focus from a service economy to a manufacturing economy.

Charter Company is preparing their budget for the first quarter of 2017.The following data is provided: For the budgeted balance sheet at 31 March,what amount should be shown for Inventory?

In order to prepare a budgeted income statement,several other budgets need to be prepared first.Which of the following is NOT one of the budgets needed to prepare the budgeted income statement?

Repair and maintenance costs of vehicles used to deliver products to the customers are inventoriable product costs.

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

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