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accounting 2 exercise8

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1. The cash budget is especially important to a firm when;A. there is not a lot of confidence in the sales forecast.;B. it has a relatively large amount of operating cash.;C. the P/E ratio has been trending downwards.;D. it may have to negotiate a short-term bank loan.;2. Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?;A. Variable cost and fixed cost.;B. Direct cost and indirect cost.;C. Product cost and period cost.;D. Committed cost and discretionary cost.;3. Which of the following costs are included in the cost classification that is based on the time frame perspective?;A. Variable cost and fixed cost.;B. Direct cost and indirect cost.;C. Product cost and period cost.;D. Committed cost and discretionary cost.;4. Which of the following is a plan for acquiring the resources needed to complete the manufacturing activities that will satisfy the organization's sales forecast?;A. Sales budget;B. Raw materials budget;C. Production budget;D. Direct labor budget;5. The operating expense budget is based on the;A. sales budget.;B. production budget.;C. manufacturing overhead budget.;D. cash budget.;6. Which of the following items would be included in the operating expense budget?;A. Sales commissions.;B. Raw material purchases.;C. Cash receipts.;D. Cost of goods sold.;7. What is the "key" to the entire operating budget?;A. The forecast of operating activity.;B. The budgeted income statement.;C. The budgeted balance sheet.;D. The production/purchases budget.;8. Which of the following lists the components of the master budget in correct chronological order?;A. Cash budget, budgeted income statement, budgeted balance sheet.;B. Budgeted balance sheet, cash budget, budgeted income statement.;C. Budgeted income statement, cash budget, budgeted balance sheet.;D. It doesn't matter in which order they are prepared.;9. If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of a candy bar?;A. Raw material price variance, expressed in cents per pound.;B. Raw material usage variance, expressed as a total cost for the month.;C. Raw material usage variance, expressed in total pounds for the month.;D. Raw material usage variance, expressed in total pounds for the week.

 

Paper#79996 | Written in 18-Jul-2015

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