1. The production budget is typically prepared prior to the sales budget. (Points : 3)
True
False
2. One benefit of budgeting is that it coordinates the activities of the entire organization. (Points : 3)
True
False
3. One difficulty with self-imposed budgets is that they are not subject to any type of review. (Points : 3)
True
False
4. The master budget is a network consisting of many separate budgets that are interdependent. (Points : 3)
True
False
5. Planning and control are essentially the same thing. (Points : 3)
True
False
6. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. (Points : 3)
True
False
7. In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling and administrative expenses to determine the expected cash disbursements for selling and administrative expenses. (Points : 3)
True
False
8. Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared? (Points : 3)
Sales budget, cash budget, direct materials budget, direct labor budget
Production budget, sales budget, direct materials budget, direct labor budget
Sales budget, cash budget, production budget, direct materials budget
Selling and administrative expense budget, budgeted income statement, budgeted balance sheet
9. National Telephone company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company's controller has suggested initiating a formal budgeting process. Which of the follow steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system? (Points : 3)
Implementing the change quickly.
Including in department resonsibility reports only those items that are under the department manager's control.
Demonstrating top management support for the budgeting program.
Ensuring that favorable deviations of actual results from the budget, as well as unfavorable deviations, are discussed with the responsible managers.
10. Which of the following statements is not correct? (Points : 3)
The sales budget is the starting point in preparing the master budget.
The sales budget is constructed by multiplying the expected sales in units by the sales price.
The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period.
11. Budgeted production needs are determined by: (Points : 3)
adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total.
adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total.
adding budgeted sales in units to the desired ending inventory in units.
deducting the beginning inventory in units from budgeted sales in units.
12. The budgeted amount of raw materials to be purchased is determined by: (Points : 3)
adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.
subtracting the beginning inventory of raw materials to the raw materials needed to meet the production schedule.
adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials.
13. Which of the following is not correct regarding the manufacturing overhead budget? (Points : 3)
Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
Manufacturing overhead costs should be broken down by cost behavior.
The manufacturuing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor.
A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.
14. Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be: (Points : 3)
60,000 units
65,000 units
75,000 units
66,000 units
15. Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Points : 3)
$15,792
$15,002.40
$16,584.60
$31,584
16. Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: (Points : 3)
$102,870
$11,340
$91,530
$11,780
17. The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budget fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: (Points : 3)
$100,650
$106,700
$5,500
$95,150
18. Avril Company makes collections on sales according to the following schedule:
30% in the month of sale
60% in the month following sale
8% in the second month following sale
The following sales are expected:
Expected Sales
January.........$100,000
February........$120,000
March.............$110,000
Cash collections in March should be budgeted to be: (Points : 3)
$110,000
$110,800
$105,000
$113,000
CLICK HERE TO GET THE ANSWER !!!!
Sunday 7 April 2013
1. The production budget is typically prepared prior to the sales budget. (Points : 3)
True
False
2. One benefit of budgeting is that it coordinates the activities of the entire organization. (Points : 3)
True
False
3. One difficulty with self-imposed budgets is that they are not subject to any type of review. (Points : 3)
True
False
4. The master budget is a network consisting of many separate budgets that are interdependent. (Points : 3)
True
False
5. Planning and control are essentially the same thing. (Points : 3)
True
False
6. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. (Points : 3)
True
False
7. In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling and administrative expenses to determine the expected cash disbursements for selling and administrative expenses. (Points : 3)
True
False
8. Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared? (Points : 3)
Sales budget, cash budget, direct materials budget, direct labor budget
Production budget, sales budget, direct materials budget, direct labor budget
Sales budget, cash budget, production budget, direct materials budget
Selling and administrative expense budget, budgeted income statement, budgeted balance sheet
9. National Telephone company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company's controller has suggested initiating a formal budgeting process. Which of the follow steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system? (Points : 3)
Implementing the change quickly.
Including in department resonsibility reports only those items that are under the department manager's control.
Demonstrating top management support for the budgeting program.
Ensuring that favorable deviations of actual results from the budget, as well as unfavorable deviations, are discussed with the responsible managers.
10. Which of the following statements is not correct? (Points : 3)
The sales budget is the starting point in preparing the master budget.
The sales budget is constructed by multiplying the expected sales in units by the sales price.
The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period.
11. Budgeted production needs are determined by: (Points : 3)
adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total.
adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total.
adding budgeted sales in units to the desired ending inventory in units.
deducting the beginning inventory in units from budgeted sales in units.
12. The budgeted amount of raw materials to be purchased is determined by: (Points : 3)
adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.
subtracting the beginning inventory of raw materials to the raw materials needed to meet the production schedule.
adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials.
13. Which of the following is not correct regarding the manufacturing overhead budget? (Points : 3)
Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
Manufacturing overhead costs should be broken down by cost behavior.
The manufacturuing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor.
A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.
14. Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be: (Points : 3)
60,000 units
65,000 units
75,000 units
66,000 units
15. Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Points : 3)
$15,792
$15,002.40
$16,584.60
$31,584
16. Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: (Points : 3)
$102,870
$11,340
$91,530
$11,780
17. The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budget fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: (Points : 3)
$100,650
$106,700
$5,500
$95,150
18. Avril Company makes collections on sales according to the following schedule:
30% in the month of sale
60% in the month following sale
8% in the second month following sale
The following sales are expected:
Expected Sales
January.........$100,000
February........$120,000
March.............$110,000
Cash collections in March should be budgeted to be: (Points : 3)
$110,000
$110,800
$105,000
$113,000
CLICK HERE TO GET THE ANSWER !!!! 1. The production budget is typically prepared prior to the sales budget. (Points : 3) True False 2. One benefit of budgeting is that it coordinates the activities of the entire organization. (Points : 3) True False 3. One difficulty with self-imposed budgets is that they are not subject to any type of review. (Points : 3) True False 4. The master budget is a network consisting of many separate budgets that are interdependent. (Points : 3) True False 5. Planning and control are essentially the same thing. (Points : 3) True False 6. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. (Points : 3) True False 7. In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling and administrative expenses to determine the expected cash disbursements for selling and administrative expenses. (Points : 3) True False 8. Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared? (Points : 3) Sales budget, cash budget, direct materials budget, direct labor budget Production budget, sales budget, direct materials budget, direct labor budget Sales budget, cash budget, production budget, direct materials budget Selling and administrative expense budget, budgeted income statement, budgeted balance sheet 9. National Telephone company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company's controller has suggested initiating a formal budgeting process. Which of the follow steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system? (Points : 3) Implementing the change quickly. Including in department resonsibility reports only those items that are under the department manager's control. Demonstrating top management support for the budgeting program. Ensuring that favorable deviations of actual results from the budget, as well as unfavorable deviations, are discussed with the responsible managers. 10. Which of the following statements is not correct? (Points : 3) The sales budget is the starting point in preparing the master budget. The sales budget is constructed by multiplying the expected sales in units by the sales price. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period. 11. Budgeted production needs are determined by: (Points : 3) adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total. adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. adding budgeted sales in units to the desired ending inventory in units. deducting the beginning inventory in units from budgeted sales in units. 12. The budgeted amount of raw materials to be purchased is determined by: (Points : 3) adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule. subtracting the beginning inventory of raw materials to the raw materials needed to meet the production schedule. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials. adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials. 13. Which of the following is not correct regarding the manufacturing overhead budget? (Points : 3) Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead. Manufacturing overhead costs should be broken down by cost behavior. The manufacturuing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor. A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget. 14. Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be: (Points : 3) 60,000 units 65,000 units 75,000 units 66,000 units 15. Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Points : 3) $15,792 $15,002.40 $16,584.60 $31,584 16. Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: (Points : 3) $102,870 $11,340 $91,530 $11,780 17. The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budget fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: (Points : 3) $100,650 $106,700 $5,500 $95,150 18. Avril Company makes collections on sales according to the following schedule: 30% in the month of sale 60% in the month following sale 8% in the second month following sale The following sales are expected: Expected Sales January.........$100,000 February........$120,000 March.............$110,000 Cash collections in March should be budgeted to be: (Points : 3) $110,000 $110,800 $105,000 $113,000 CLICK HERE TO GET THE ANSWER !!!!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment