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ACC561 ACC/561 WEEK 5 QUIZ (12/12)




Question;Question;1;Why;are budgets useful in the planning process?;They;enable the budget committee to earn their paycheck.;They;provide management with information about the company's past performance.;They;help communicate goals and provide a basis for evaluation.;They;guarantee the company will be profitable if it meets its objectives.;Question;2;A;common starting point in the budgeting process is;past;performance.;a;clean slate, with no expectations.;expected;future net income.;to;motivate the sales force.;Question;3;Which;of the following statements about budget acceptance in an organization is true?;The;most widely accepted budget by the organization is the one prepared by top;management.;The;most widely accepted budget by the organization is the one prepared by the;department heads.;Budgets;are hardly ever accepted by anyone except top management.;Budgets;have a greater chance of acceptance if all levels of management have provided;input into the budgeting process.;Question;4;What;is budgetary control?;The;use of budgets in controlling operations;The;degree to which the CFO controls the budget;Another;name for a flexible budget;The;process of providing information on budget differences to lower level managers;Question;5;The;comparison of differences between actual and planned results;appears;on the company's external financial statements.;is;done by the external auditors.;is;usually done orally in departmental meetings.;appears;on periodic budget reports.;Question;6;A;static budget;shows;planned results at the original budgeted activity level.;is;changed only if the actual level of activity is different than originally;budgeted.;should;not be prepared in a company.;is;useful in evaluating a manager's performance by comparing actual variable costs;and planned variable costs.;Question;7;A;responsibility report should;only;be prepared at the highest level of managerial responsibility.;show;only those costs that a manager can control.;only;show variable costs.;be;prepared in accordance with generally accepted accounting principles.;Question;8;Which;responsibility centers generate both revenues and costs?;Profit;and cost centers;Cost;and investment centers;Investment;and profit centers;Only;profit centers;Question;9;The;linens department of a large department store is;a;cost center.;an;investment center.;not;a responsibility center.;a;profit center.;Question;10;What;is a standard cost?;The;total number of units times the budgeted amount expected;The;total amount that appears on the budget for product costs;Any;amount that appears on a budget;The;amount management thinks should be incurred to produce a good or service;Question;11;Using;standard costs;makes;management by exception more difficult.;makes;employees less "cost-conscious.;increases;clerical costs.;provides;a basis for evaluating cost control.;Question;12;Unfavorable;materials price and quantity variances are generally the responsibility of the;Price Quantity;Production;department Purchasing;department;Purchasing;department Production;department;Production;department Production;department;Purchasing;department Purchasing;department


Paper#37597 | Written in 18-Jul-2015

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