WorksheetsCost Accounting-Budgeting
Total questions: 20
Worksheet time: 13mins
The master budget reflects the impact of operating decisions, but not financing decisions.
True
False
Budgeting is used to help companies:
plan to better satisfy customers
anticipate potential problems
focus on opportunities
All of these answers are correct.
Budgeted manufacturing overhead costs include all types of factory expenses EXCEPT:
fixed items such as depreciation of manufacturing machinery
variable items such as plant supplies
indirect labor such as the salary of the plant supervisor
direct labor and direct materials
Who is responsible for the budget?
Accountants
Shareholders
Investors
Management
What is NOT one of the benefits of budgeting
Planning ahead
Knowing the future will always be correct
Creating early warning system
Motivating personnel
The two classes of budgets are:
Operating & Financial
Variable & Fixed
Sales & Product
Direct materials & Direct labor
This budget shows both the quantity and cost of direct materials to be purchased.
Production
Direct materials
Indirect materials
Materials
Which of the following is always true with regard to the net present value (NPV) approach?
The NPV and the IRR approaches will always rank projects in the same order
The NPV and Payback approaches will always rank projects in the same approaches
If a project is found to be acceptable under the NPV approach, it would also be acceptable under the internal rate of return (IRR) approach
If a project is found to be acceptable under the NPV approach, it would also be acceptable under the payback approach
This is a form of analysis defined by calculating how long it will take for the asset to "earn back" the money you invested in purchasing it.
internal rate of return
net present value
payback method analysis
tax accounting
The present value of an asset's future cash flows minus its purchase price initial investment is
Internal Rate of Return
Payback
Net Present Value
Modified Internal Rate of Return
Budgeting provides all of the following except:
support for the management functions of planning and coordination
a means to communicate the organization's short-term goals to its members
an ethical framework for decision making
a means to anticipate problems
To prepare the cash budget, all of the following budgets are required except:
budgeted balance sheet
revenue budget
capital expenditures budget
cost of goods sold budget
A (a) is a detailed plan, expressed in quantitative term, that specifies how an organization will acquire and use resources during a particular period of time.
The Gummy family budget $35 a month for a vacation. How much money will they have saved up if they continue to save this amount for 15 months?
$525
$225
$550
$50
Depreciation is included as a cash flow
True
False
Costs that do not change from month to month, you are obligated to pay them regardless of income variation
variable expenses
fixed expenses
disposable income
wealth
