Question 1

Identify variances in budgets.

Accepted Answer

The answer of Identify variances in budgets....

Question 2

The net profit margin is a ratio of profitability calculated as net profits divided by sales.

Accepted Answer

A) True 
 B)False

Question 3

Department budgets must be complex to account for all the expenditures that will be encountered.

Accepted Answer

A) True 
 B)False

Question 4

Controls are used to ensure the firm does what is planned.

Accepted Answer

A) True 
 B)False

Question 5

What are the types of controls in the control process?

Accepted Answer

A) Attitude controls 
B) Preliminary/input controls 
C) Concurrent/process controls 
D) Rework/output controls 
E) Damage controls

Question 6

A firm's annual_______ is an historical summary of production and other costs that have actually been incurred.

Accepted Answer

A) net profit and loss statement 
B) insurance coverage report 
C) financial statement 
D) quality control report 
E) variable budgets

Question 7

A _______ is the relationship between any two numbers derived from a firm's financial statements.

Accepted Answer

A) ratio 
B) controller 
C) statement of income 
D) deviation 
E) causality

Question 8

Workers' compensation insurance is insurance on homes, cars, and businesses.

Accepted Answer

A) True 
 B)False

Question 9

Define a ratio, and describe how ratios can be useful in making sound business decisions.

Accepted Answer

The answer of Define a ratio, and describe how ratios...

Question 10

Distinguish between liquidity ratios and leveraging ratios.

Accepted Answer

The answer of Distinguish between liquidity ratios and leveraging ratios....

Question 11

Although it has not been explicitly mentioned previously, the budget is also a planning device.

Accepted Answer

A) True 
 B)False

Question 12

Good decision makers include employees when devising ways to develop efficient methods and cut costs.

Accepted Answer

A) True 
 B)False

Exam 12: Controls: How Do You Keep the New Venture on Track

Identify variances in budgets.