Exam 6: Master Budget and Responsibility Accounting

The following information pertains to the January operating budget for Casey Corporation. At the end of January,budgeted accounts receivable is ________.

Management will most likely behave the same way if a department is structured as a cost center or if the same department is structured as a profit center.

A packaging department is most likely a profit center.

In a multinational company,budgeting is primarily done to evaluate the firm's performance relative to its budgets.

Prescher Company sells three products with the following seasonal sales pattern: The annual sales budget shows forecasts for the different products and their expected selling price per unit to be as follows: Required: Prepare a sales budget,in units and dollars,by quarters for the company for the coming year.

A budget generally includes only the financial aspects of management's plan.

A primary consideration in assigning a cost to a responsibility center is ________.

To prepare the direct materials labor costs budget,which of the following budget must be prepared first?

Computer-based systems,like ERP,help managers budget for all manufacturing costs but lack the ability to help managers budget for non-manufacturing costs.

Budgeting includes only the financial aspects of the plan and NOT any nonfinancial aspects such as the number of physical units manufactured or the hours that the direct laborers are expected to work.

Nantucket Industries manufactures and sells two models of watches,Prime and Luxuria.It expects to sell 3,800 units of Prime and 1,300 units of Luxuria in 2019.The following estimates are given for 2019: Nantucket had an inventory of 240 units of Prime and 125 units of Luxuria at the end of 2018.It has decided that as a measure to counter stock outages it will maintain ending inventory of 350 units of Prime and 230 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $13.There were 140 units of Crimpson in stock at the end of 2018.The management does not want to have any stock of Crimpson at the end of 2019. What is the total budgeted cost of goods manufactured in 2019?

Which of the following statements is true in the case of budgeting for multinational companies?

Most computer-based financial planning models have difficulty incorporating sensitivity (what-if)analysis.

The following information pertains to the January operating budget for Casey Corporation. For January,budgeted cash collections are ________.

Which of the following is a reason why top managers want lower-level managers to participate in the budgeting process?

Bradford,Inc. ,expects to sell 6,000 ceramic vases for $21 each.Direct materials costs are $3,direct manufacturing labor is $10,and manufacturing overhead is $3 per vase.The following inventory levels apply to 2019: How many ceramic vases should be produced in 2019?

Violet Sales Corp,reports the year-end information from 2019 as follows: Violet is developing the 2019 budget.In 2019 the company would like to increase selling prices by 3.5%,and as a result expects a decrease in sales volume of 14%.All other operating expenses are expected to remain constant.Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2019? (Round interim calculations to the nearest cent and the final answer to the nearest dollar. )

In a revenue center,a manager is responsible for investments,revenues,and costs.

A key type of sensitivity analysis for managers is to play "what-if" with the cash budget so as to anticipate outcomes and take steps to minimize the effects of shortfalls in cash balances.

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