1) On the production budget, the number of units to be produced is computed as A) unit sales + desired end inventory + beginning inventory. B) unit sales + desired end inventory – beginning inventory.C) unit sales – desired end inventory – beginning inventory. D) unit sales – desired end inventory + beginning inventory.
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3) Regarding the budgeting process, which of the following statements is true?A) Top corporate management should always design the budget.B) The company”s external auditors should always approve the budget.C) The budget should be designed from the bottom up, with input from managers at all levels.D) All of the listed statements are true statements about the budgeting process.
Which of the following statements about budgeting is not true?A) Budgeting is an aid to planning and control.B) The operating budget should be prepared by top management, rather than mid-management personnel, because they have the overall objectives of the company in mind.C) Budgets help to coordinate the activities of the entire organization.D) Budgets promote communication and coordination between departments in an organization
B) The operating budget should be prepared by top management, rather than mid-management personnel, because they have the overall objectives of the company in mind.
Which of the following is considered to be a rigorous but attainable standard?a. all material standardsb. normal standardsc. ideal standardsd. balances standards
Which statement is true as it relates to standard cost?a. it is the actual cost of a unit of productb. It represents the selling price of a product to produce the most profitc. it is a total budgeted amount in the accounting recordsd. it is often journalized in the accounting system
From what does the overhead volume variance result?a. variable overhead costsb. fixed overhead costsc. both variable and fixed overhead costsd. all manufactoring costs
Which of the following is not true of the budgeting process?a. budgeting provides feedback to mgt. to aid in assessing how well its reaching its goals.b. budgets force managers to plan for the futurec. budgets force managers to consider relations among operations across the entire value chain.d. the performance report is prepared as part of the master budget.
Which of the following is part of the financial budget?a. budgeted balance sheetb. operating expensesc. sales budgetd. budgeted income statement
Which of the following budgets is the comprehensive planning document for the entire organization?a. sales budgetb. capital expenditure budgetc. master budgetd. budgeted income statement