Question 1

The number of units in the sales budget and the production budget may differ because of a change in ________.

Accepted Answer

A) ending finished goods inventory levels 
B) total overhead charges for the year 
C) beginning direct material inventory levels 
D) sales returns and allowances 
A) ending finished goods inventory levels 
B) total overhead charges for the year 
C) beginning direct material inventory levels 
D) sales returns and allowances

Question 2

The following information pertains to the January operating budget for Casey Corporation.
 
For January,budgeted net income is ________.

Accepted Answer

A) $50,750 
B) $30,750 
C) $101,800 
D) $61,200 
A) $50,750 
B) $30,750 
C) $101,800 
D) $61,200

Question 3

Financing decisions primarily deal with ________.

Accepted Answer

A) the use of scarce resources 
B) how to obtain funds to acquire resources 
C) acquiring equipment and buildings 
D) preparing financial statements for stockholders 
A) the use of scarce resources 
B) how to obtain funds to acquire resources 
C) acquiring equipment and buildings 
D) preparing financial statements for stockholders

Question 4

A budget is an end product of negotiations among senior and subordinate mangers because ________.
 
B)senior managers alone cannot spare the time required for the budgeting process
C)senior managers are responsible for providing information on competitors performance and subordinate managers are responsible for information on external market conditions
D)senior managers want very challenging targets,while subordinates may want targets that are relatively easier to achieve.

Accepted Answer

The answer of A budget is an end product of...

Question 5

Best products,an Atlanta based company,is in the midst of its budgeting process.It has already prepared its direct materials usage budget and is now in the process of preparing its direct material purchase budget.In addition to the details gathered to prepare the direct materials usage budget,Best also must know ________.

Accepted Answer

A) the target direct materials ending inventory 
B) the ratio of direct materials to cost of goods sold 
C) the beginning direct materials inventory level 
D) the quantity of direct materials to be purchased 
A) the target direct materials ending inventory 
B) the ratio of direct materials to cost of goods sold 
C) the beginning direct materials inventory level 
D) the quantity of direct materials to be purchased

Question 6

Activity-based budgeting would separately estimate ________.

Accepted Answer

A) the cost of overhead for a department 
B) a plant-wide cost-driver rate 
C) the cost of a setup activity 
D) All of these answers are correct. 
A) the cost of overhead for a department 
B) a plant-wide cost-driver rate 
C) the cost of a setup activity 
D) All of these answers are correct.

Question 7

Research shows that the performance of employees falls when they are asked to adhere to challenging budgets.

Accepted Answer

A) True 
 B)False

Question 8

The following information pertains to the January operating budget for Murphy Corporation,a retailer:
 
For January,budgeted gross margin is ________.

Accepted Answer

A) $124,800 
B) $133,120 
C) $74,880 
D) $54,000 
A) $124,800 
B) $133,120 
C) $74,880 
D) $54,000

Question 9

Which of the following information is required by a company's manager while preparing a manufacturing overhead costs budget?

Accepted Answer

A) estimated incentives to be paid to marketing personnel 
B) estimated expense for office supplies 
C) estimated expense for maintenance of factory building 
D) rent expense for lease of office building 
A) estimated incentives to be paid to marketing personnel 
B) estimated expense for office supplies 
C) estimated expense for maintenance of factory building 
D) rent expense for lease of office building

Question 10

Responsibility accounting ________.

Accepted Answer

A) emphasizes controllability 
B) focuses on who should be asked about the information 
C) attempts to assign blame for problems to a specific manager 
D) attempts to create a decentralized organization 
A) emphasizes controllability 
B) focuses on who should be asked about the information 
C) attempts to assign blame for problems to a specific manager 
D) attempts to create a decentralized organization

Question 11

Which of the following is not true of a properly executed budgetary cycle?

Accepted Answer

A) deviations from plan are only investigated at the conclusion of the fiscal year as actual data can be finally compiled 
B) past performance and market feedback are considered in setting budget amounts 
C) specific financial and nonfinancial expectations are set 
D) during the fiscal year,managers investigate deviations from plans 
A) deviations from plan are only investigated at the conclusion of the fiscal year as actual data can be finally compiled 
B) past performance and market feedback are considered in setting budget amounts 
C) specific financial and nonfinancial expectations are set 
D) during the fiscal year,managers investigate deviations from plans

Question 12

Sherry and John Enterprises are using the kaizen approach to budgeting for 2018.The budgeted income statement for January 2018 is as follows:
 
Under the kaizen approach,cost of goods sold and variable operating expenses are budgeted to decline by 3% per month.
What is budgeted gross margin for March 2018?

Accepted Answer

A) $413,996 
B) $426,800 
C) $466,796 
D) $476,642 
A) $413,996 
B) $426,800 
C) $466,796 
D) $476,642

Question 13

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

Accepted Answer

A) $108,000 
B) $75,600 
C) $70,000 
D) $49,700 
A) $108,000 
B) $75,600 
C) $70,000 
D) $49,700

Question 14

A controllable cost is any cost that can be ________ by a responsibility center manager for a period of time.

Accepted Answer

A) controlled 
B) influenced 
C) segregated 
D) excluded 
A) controlled 
B) influenced 
C) segregated 
D) excluded

Question 15

Which of the following is a component of operating budgets?

Accepted Answer

A) production budget 
B) budgeted statement of cash flows 
C) capital expenditures budget 
D) budgeted balance sheet 
A) production budget 
B) budgeted statement of cash flows 
C) capital expenditures budget 
D) budgeted balance sheet

Question 16

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?

Accepted Answer

Budgetary slack occurs when subordinates

Question 17

Describe operating and financial budgets and give at least two examples of each discussed in the textbook.

Accepted Answer

Operating budgets specify the expected o

Question 18

Freemore Company has the following sales budget for the last six months of 2018:
 
Sales are immediately due,however the cash collection of sales,historically,has been as follows:
 
What is the ending balance of accounts receivable for the end of September,assuming uncollectible balances are written off at the end of the second month following the sale?

Accepted Answer

A) $260,550 
B) $134,070 
C) $113,375 
D) $109,250 
A) $260,550 
B) $134,070 
C) $113,375 
D) $109,250

Question 19

Mary's Baskets Company expects to manufacture and sell 30,000 baskets in 2019 for $5 each.There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 9,000 baskets.The company keeps no work-in-process inventory.What amount of sales revenue will be reported on the 2019 budgeted income statement?

Accepted Answer

A) $175,000 
B) $150,000 
C) $125,000 
D) $85,000 
A) $175,000 
B) $150,000 
C) $125,000 
D) $85,000

Question 20

Kaizen budgeting encourages dramatic improvements and substantial reduction in costs.

Accepted Answer

A) True 
 B)False

The number of units in the sales budget and the production budget may differ because of a change in ________.

The following information pertains to the January operating budget for Casey Corporation. For January,budgeted net income is ________.

Financing decisions primarily deal with ________.

Activity-based budgeting would separately estimate ________.

Research shows that the performance of employees falls when they are asked to adhere to challenging budgets.

The following information pertains to the January operating budget for Murphy Corporation,a retailer: For January,budgeted gross margin is ________.

Which of the following information is required by a company's manager while preparing a manufacturing overhead costs budget?

Responsibility accounting ________.

Which of the following is not true of a properly executed budgetary cycle?

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

A controllable cost is any cost that can be ________ by a responsibility center manager for a period of time.

Which of the following is a component of operating budgets?

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?

Describe operating and financial budgets and give at least two examples of each discussed in the textbook.

Kaizen budgeting encourages dramatic improvements and substantial reduction in costs.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

Exam 6: Master Budget and Responsibility Accounting

The number of units in the sales budget and the production budget may differ because of a change in ________.

The following information pertains to the January operating budget for Casey Corporation. For January,budgeted net income is ________.

Financing decisions primarily deal with ________.

Activity-based budgeting would separately estimate ________.

Research shows that the performance of employees falls when they are asked to adhere to challenging budgets.

The following information pertains to the January operating budget for Murphy Corporation,a retailer: For January,budgeted gross margin is ________.

Which of the following information is required by a company's manager while preparing a manufacturing overhead costs budget?

Responsibility accounting ________.

Which of the following is not true of a properly executed budgetary cycle?

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

A controllable cost is any cost that can be ________ by a responsibility center manager for a period of time.

Which of the following is a component of operating budgets?

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?

Describe operating and financial budgets and give at least two examples of each discussed in the textbook.

Kaizen budgeting encourages dramatic improvements and substantial reduction in costs.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters