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What forms the basis for analyzing the differences between planned and actual results?


A) comparing actual results achieved with the master budget,only.
B) comparing actual results with the flexible and master budgets.
C) comparing actual results with the normal or average budget for the industry.
D) comparing actual results achieved with the actual results of the prior years.

E) B) and C)
F) B) and D)

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Variable manufacturing overhead costs such as power are considered to be which of the following?


A) a semivariable,or mixed,cost having both variable and fixed components.
B) a variable cost with variable components,only.
C) a fixed cost with fixed components,only.
D) all of the above

E) A) and B)
F) A) and C)

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The budget formula for manufacturing costs is $13,500 + $6.00 per unit per unit produced.The budget formula for marketing and administrative costs is $10,000 + $8.00 per unit sold.If 10,000 units are expected to be produced,but only 8,000 units are expected to be sold,what are the total budgeted expenses for the period?

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Manufactur...

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What is the cultural impact on budgeting?


A) Lower-level managers in Germany,the United Kingdom,the United States,New Zealand,Canada,and Australia are less willing to accept the "fact" that top managers are more powerful than they.
B) Lower-level managers in Germany,the United Kingdom,the United States,New Zealand,Canada,and Australia are more likely to not accept top-down budgets.
C) Lower-level managers in Germany,the United Kingdom,the United States,New Zealand,Canada,and Australia are more likely to want to participate in budgeting,
D) all of the above

E) A) and D)
F) A) and C)

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Marketing costs include expenditures for salaries,advertising,and sales office costs would be classified as which of the following type of activity?


A) customer-level activities.
B) facility-level activities.
C) product-level activities.
D) unit-level activities.

E) A) and B)
F) None of the above

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Walk-In Health Center The Walk-In Health Center sets targets for every responsibility center to achieve a 10 percent increase over last year in the number of patients treated. Refer to the Walk-In Health Center.What is the problem with this performance measure?

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Employees of the health center...

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If a company wishes to establish a factory overhead budget system in which estimated costs can be derived directly from estimates of activity levels,which type of budget should it prepare?


A) zero-based budget.
B) flexible budget.
C) discretionary budget.
D) fixed budget.

E) A) and B)
F) None of the above

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An investment center's performance is most likely to be affected by which of the following?


A) an increase is sales volume.
B) a decrease in expenses.
C) an increase in interest rates.
D) all of the above.

E) A) and D)
F) A) and C)

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Which of the following is not a component of a comprehensive master budget?


A) budgeted income statement,
B) budgeted balance sheet.
C) budgeted retained earnings statement.
D) budgeted statement of cash flows.

E) None of the above
F) All of the above

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Manufacturing Overhead costs such as maintenance,rent,insurance,and depreciation should be categorized as which of the following?


A) fixed overhead costs and facility-level activities.
B) variable overhead costs and facility-level activities.
C) fixed overhead costs and product-level activities.
D) variable overhead costs and product-level activities.

E) B) and C)
F) All of the above

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Explain the difference between a flexible budget and master budget.

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The master budget is based on estimated ...

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Which of the following statements is true concerning budgeting?


A) Budgeting is a dynamic process that ties together goals,plans,decision making,and employee performance evaluation
B) Budgeting is required by generally accepted accounting principles.
C) Budgeting is a static process that ties together goals,plans,decision making,and employee performance evaluation
D) none of the above.

E) B) and D)
F) C) and D)

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Alma Mater College The Admissions Department of Alma Mater College plans to hold several "open house" parties during the year.All the refreshment costs will be charged to the department.However,the party creates extra work for the Maintenance Department.The maintenance crew must work overtime and the maintenance supervisor is complaining about cost overruns in the Maintenance Department. Refer to the Alma Mater College.Who should be responsible for the overtime costs of the maintenance workers?

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The department that is respons...

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When is the master budget prepared?


A) before the budget period begins.
B) after the budget period begins,but before it ends.
C) about half way through the budget period begins.
D) at the end or after the budget period ends.

E) A) and B)
F) C) and D)

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An incentive plan model for accurate reporting should not have which of the following components?


A) it relates rewards positively to forecasted sales.
B) it provides incentives for the sales manager to increase sales beyond the forecast.
C) it penalizes the sales manager when sales are less than forecasted.
D) it penalizes the sales manager when sales are more than forecasted.

E) B) and C)
F) A) and B)

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Sales volume variance analysis.Crank Company prepared a budget last period with budgeted sales of 56,000 units at a price of $70 each.Variable costs were budgeted to be $10 per unit.Fixed costs were budgeted to be $2,100,000 for the period.During the period,actual sales totaled 60,000 units. Required: Prepare a variance report to show the difference between the master budget and the flexible budget. (Crank Company;sales volume variance analysis. )

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blured image_TB2144_00 (a)$4,200,000 = 60,...

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In profit planning and budgeting,which statement is true concerning a favorable variance?


A) A favorable variance would increase operating profit,holding all other things constant.
B) A favorable variance is always positive (good) ,holding all other things constant.
C) A favorable variance would decrease operating profit,holding all other things constant.
D) A favorable variance is always negative (bad) ,holding all other things constant.

E) A) and C)
F) A) and D)

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What cost centers have input-output relationships sufficiently well established so that a particular set of inputs will provide a predictable and measurable set of outputs?


A) engineered cost centers.
B) direct cost centers.
C) opportunity cost centers.
D) discretionary cost centers.

E) A) and B)
F) B) and D)

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For which types of operations do firms design operational planning and control systems?


A) manufacturing operations only.
B) marketing and manufacturing operations only.
C) manufacturing and other activities but not marketing.
D) manufacturing,marketing,and other activities.

E) B) and D)
F) A) and B)

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Which of the following statements is true concerning the flexible budget?


A) The flexible budget shows the expected relation between costs and volume.
B) The flexible budget has a fixed cost component which is expected to be incurred regardless of the level of activity.
C) The flexible budget has a variable cost per unit of activity component where variable costs change in total as the level of activity changes.
D) all of the above.

E) A) and D)
F) A) and C)

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Showing 41 - 60 of 126

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