Exam 19: Introduction to Managerial Accounting and the Master Budget

The capital expenditures budget stands alone and is not part of either the operating budget or the financial budget.

Which of the following is NOT an inventoriable product cost?

Management is accountable to communities in which of the following ways?

The following information relates to Webster Ltd: Advertising costs \ 13,200 Sales salary 13,400 Sales revenue 470,000 President's salary 60,000 Office rent 53,500 Manufacturing equipment depreciation 3000 Indirect materials 3600 Indirect labour 12,800 Factory repair and maintenance 840 Direct materials 30,870 Direct labour 31,400 Delivery vehicle depreciation 910 Administrative salaries 30,100 How much was Webster's manufacturing overhead?

What is total quality management?

A retailing company's budgeted income statement includes the following data: Data extracted from budgeted Income statement Mar Apr May Jun Sales \ 140,000 \ 100,000 \ 130,000 \ 95,000 Commission expense (20\% of sale) 28,000 20,000 26,000 19,000 Salaries expense 32,000 32,000 32,000 32,000 Miscellaneous expense -6\% of sales 8400 6000 7800 5700 Rent expense 3700 3700 3700 3700 Electricity and gas expense 2200 2200 2200 2200 Insurance expense 2400 2400 2400 2400 Depreciation expense 4200 4200 4200 4200 The budget assumes that 40% of commission expenses are paid in the month they are incurred and the remaining 60% are paid one month later.In addition,50% of salary expenses are paid in the same month and the remaining 50% are paid one month later.Miscellaneous expenses,rent expense and electricity and gas expenses are assumed to be paid in the same month in which they are incurred.Insurance has been paid in advance for the year on 1 January. Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

Which of the following costs do NOT go directly into the work in process account?

The cash budget can be prepared before the sales budget.

Which of the following applies to the raw materials used by a manufacturing company?

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

The capital expenditures budget is part of the operating budget.

Manufacturing overhead includes which of the following?

When the different business units at a company use differently structured reporting formats for their business unit budgets,it is more difficult for the company to consolidate the business unit data into a company-wide budget.

Nurix Ltd is a business consulting firm.During the month of February,Nurix earned $56,400 of revenues by providing services to 46 clients.Operating expenses for February were $11,500 and non-operating expenses were $4000. What is the cost per service?

The wages and benefits of the factory manager are inventoriable product costs.

Evanston Manufacturing Company reported the following information for the year 2017: Number of units produced 6000 Number of units sold 6200 Cost of goods manufactured \ 402,000 Cost of sales \ 525,500 Sales revenue \ 1,360,000 Gross profit \ 742,000 Operating expense \ 728,000 What was the unit product cost?

A budgeted income statement is based on estimated amounts and not actual amounts.

Which of the following are period costs?

Advertising and marketing costs are included in manufacturing overhead.

Retailing businesses resell goods which they purchase from a producer.