Question;QuizQuestion 1.1.(TCO 2) Operating budgets and financial budgets(Points: 3) have nothing to do with the master budget.are prepared after the master budget.combined, form the master budget.are prepared before the master budget.Question 2.2.(TCO 2) The time coverage of a budget should be(Points: 3) shorter rather than longer.cover design through manufacture and sale of the product.guided by the purpose of the budget.one year.Question 3.3.(TCO 2) Financial budgets include the(Points: 3) administrative costs budget.capital expenditures budget.production budget.marketing costs budget.Question 4.4.(TCO 2) A feature of a standard-costing system is that the costs of every product or service planned to be worked on during the period can be computed at the start of that period. This feature of standard costing makes it possible to(Points: 3) maintain actual costs as an integral part of the costing system.use a simple recording system.eliminate routine reports.justify eliminating the budgeting process.Question 5.5.(TCO 2) A variance is(Points: 3) the difference between a budgeted amount and a standard amount.the gap between an actual result and a benchmark amount.the required number of inputs for one standard output.the difference between an actual result and a budgeted amount.Question 6.6.(TCO 2) Which of the following statements is true about overhead cost variance analysis using activity-based costing?(Points: 3) Overhead cost variances are calculated for output-unit level costs only.Overhead cost variances are calculated for variable manufacturing overhead costs only.A four-variance analysis can be conducted.Activity-based costing uses input measures for all activities, resulting in the inability to do flexible budgets needed for variance analysis.Question 7.7.(TCO 2) Fixed overhead costs include(Points: 3) the cost of sales commissions.property taxes paid on plant facilities.indirect materials.energy costs.Question 8.8.(TCO 2) Katie Enterprises reports the year-end information from 20X8 as follows: Sales (70,000 units) $560,000, Cost of goods sold 210,000, Gross margin 350,000, Operating expenses 200,000, Operating income $150,000. Katie is developing the 20X2 budget. In 20X2, the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 20X2?(Points: 3) $189,000$196,560$218,400$210,000Question 9.9.(TCO 2) Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 20x2, through June 30, 20x3. July 1, 20x2 June 30, 20x3Raw material (note) 40,000 10,000Work in process 8,000 8,000 Finished goods 30,000 5,000(note) Three units of raw material are needed to produce each unit of finished product.If 450,000 finished units were to be manufactured during the 20x2-20x3 fiscal year by Hester Company, the units of raw material needed to be purchased would be(Points: 3) 1,350,000.1,360,000.1,320,000.1,330,000.Question 10.10.(TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month's projected total sales. ll purchases of inventory are on account, 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.Brenton's budgeted total cash receipts in April are(Points: 3) $448,000.$437,000.$431,600.$328,000.
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