BF Chapter 5 Review

In which section of a cash budget would Collections on account be recorded?

• cash receipts

• cash payments

• cash excess

• cash shortage

Which of the following is an example of a fixed cash expense?

• utility expenses

• rent

• wages

• building repairs

Which type of inventory is a manufacturing company likely to have on hand?

• direct materials

• work in process

• finished goods

• all of these

A measure commonly used to determine how many times inventory is sold and replaced is called

• work-in-process ratio.

• inventory turnover.

• sales turnover.

• inventory control.

The approximate sales volume required for a business to cover costs, below which production would be unprofitable and above which it would be profitable, is called the

• variable cost.

• opportunity cost.

• breakeven point.

• cost/benefit analysis.

Selling Price – _____ = Gross Profit per Unit

• Fixed Costs

• Variable Costs

• Current Assets

• Current Liabilities

Paying an employee a higher wage for working on nights or weekends is called

• shift differential.

• indirect compensation.

• commission

• fringe benefit.

Employees whose earnings are determined on the basis of each unit of output are paid on a

• salary

• draw

• commission

• piece rate

The amount of pay an employee takes home after all deductions have been taken is called

• gross pay.

• net pay.

• total pay.

• final pay.

This payroll deduction is taken to help fund retirement benefits through Social Security.

• FETA

• FUTA

• FICA

• FUBAR