ACCT 434 Week 2 – Master Budget Flexible Budgets – Quiz

ACCT 434 Week 2 – Master Budget Flexible Budgets – Quiz

1. Question : (TCO 2) Operating budgets and financial budgets

2. Question : (TCO 2) To gain the benefits of budgeting, ________ must understand and support the budget.

3. Question : (TCO 2) Which budget is not necessary to prepare the budgeted balance sheet?

4. Question: (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

5. Question: (TCO 2) An unfavorable variance indicates that

6. Question: (TCO 2) Which of the following statements is true about overhead cost variance analysis using activity-based costing?

7. Question:(TCO 2) Overhead costs have been increasing due to all of the following except

8. Question: (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 20X9 budget. In 20X9, 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 sales for 20X9?

9. Question:(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, 2008, through June 30, 2009.
July 1, 2008 June 30, 2009
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 600,000 units during the 2008-2009 fiscal year, the number of units it would have to manufacture during the year would be

10. Question: (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 payments in March for inventory purchases are

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ACCT 434 Week 1 – Activity Based Costing – Quiz

ACCT 434 Week 1 – Activity Based Costing – Quiz

1. Question: (TCO 1) The average cost data are for In-Sync Fixtures Company’s (a retailer) only two product lines, Marblette and Italian Marble.
Marblette Italian Marble

Purchase volume 20,000 1,000
Purchase cost per unit $50 $250
Shipments received 12 12
Hours used per shipment * 5 3
* These data were accumulated after a careful activity analysis.

Currently, In-Sync Fixtures uses a traditional costing system with indirect costs allocated using purchased cost of goods as a basis. In-Sync Fixtures is considering refining the allocation of its receiving costs of $40,000. It realizes that the Italian Marble is heavier and requires more care than the Marblette but that the Marblette comes in larger volume.

Which statement can be made using the results of the activity analysis performed by In-Sync Fixtures?

2. Question: (TCO 1) The allocation of indirect costs in an activity-based costing system

3. Question: (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management?

4. Question: (TCO 1) A company produces three products; if one product is overcosted then

5. Question: (TCO 1) To set realistic selling prices

6. Question: (TCO 1) Different products consume different proportions of manufacturing overhead costs because of differences in all of the following EXCEPT

7. Question: (TCO 1) A well-designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis

8. Question: (TCO 1) Companies use ABC system information to

9. Question: (TCO 1) For service organizations that bill customers at a predetermined average rate, activity-based cost systems can help to

10. Question: (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity?

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ACCT 434 Week 7 – Quality Control Inventory Management

ACCT 434 Week 7 – Quality Control Inventory Management

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ACCT 434 Week 6 – Customer Profitability Capital Budgeting

ACCT 434 Week 6 – Customer Profitability Capital Budgeting

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ACCT 434 Week 5 – Pricing Decisions Management Control Systems

ACCT 434 Week 5 – Pricing Decisions Management Control Systems

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ACCT 434 Week 4 – Cost Allocation

ACCT 434 Week 4 – Cost Allocation

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ACCT 434 Week 3 – Cost Behavior Decision Making Quality

ACCT 434 Week 3 – Cost Behavior Decision Making Quality

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ACCT 434 Week 2 – Master Budget Flexible Budgets

ACCT 434 Week 2 – Master Budget Flexible Budgets

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ACCT 434 Week 1- Activity Based Costing

ACCT 434 Week 1- Activity Based Costing

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ACCT 434 Week 7 DQ2 Workout Room

ACCT 434 Week 7 DQ2 Workout Room

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