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




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#77076 | Written in 18-Jul-2015

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