1. (TCO 2) Benchmarking is (Points: 3);relatively easy to do with the amount of available financial information about companies.;best done with the best in their field regardless of type of company.;simply reporting the magnitude of differences in costs or revenues across companies.;making comparisons to direct attention to why differences in costs exist across companies.;2. (TCO 2) To gain the benefits of budgeting, ________ must understand and support the budget. (Points: 3);customers;management at all levels;suppliers;All of the above;3. (TCO 2) The operating budget process generally concludes with the preparation of the (Points: 3);research and development budget.;budgeted income statement.;distribution budget.;production budget.;4. (TCO 2) Flexible budgets (Points: 3);accommodate changes in the inflation rate.;accommodate changes in activity levels.;are used to evaluate capacity utilization.;are static budgets that have been revised for changes in prices.;5. (TCO 2) A favorable variance indicates that (Points: 3);budgeted costs are less than actual costs.;actual revenues exceed budgeted revenues.;the actual amount decreased operating income relative to the budgeted amount.;All of the above;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.;7. (TCO 2) Fixed overhead costs include (Points: 3);the cost of sales commissions.;property taxes paid on plant facilities.;indirect materials.;energy costs.;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 operating income for 20X2? (Points: 3);$135,160;$145,160;$125,160;$130,160;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, 20x3;Raw material (note) 40,000 10,000;Work 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 Hester Company plans to sell 500,000 units during the 20x2-20x3 fiscal year, the number of units it would have to manufacture during the year would be;(Points: 3);505,000.;500,000.;480,000.;475,000.;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 $400,000;Management 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 March are;(Points: 3);$478,000.;$457,000.;$492,000.;$428,000.
Paper#74065 | Written in 18-Jul-2015Price : $22