WorksheetsCost Planning (Accounting II)
Total questions: 13
Worksheet time: 7mins
The operating budget requires the preparation of many detailed budgets, including the following: (1) cash budget, (2) balance sheet budget, (3) sales budget, (4) income statement budget, and (5) purchases budget. In which order must these budgets be prepared?
5, 3, 1, 2, 4.
1, 3, 4, 5, 2.
3, 5, 4, 1, 2.
1, 2, 3, 5, 4.
3, 5, 1, 4, 2.
The cash budget is prepared
concurrently with the sales forecast.
based upon the purchases/production budget.
after the budgeted income statement.
from the budgeted balance sheet.
independently from the other budgets.
What has many keys, but can’t even open a single door?
(a)
Which of the following is not a benefit of budgeting?
Budgeting provides benchmarks against which performance can be measured.
Budgeting forces managers to concentrate on planning and to formalize their
planning efforts.
Budgeting helps managers build favorable variances into the performance
evaluation process.
Budgeting requires different functional areas of the firm to communicate and
coordinate activities.
All of the above are benefits of budgeting.
Seebold, Inc., has budgeted sales and production over the next quarter as at the picture:
On July 1, Seebold, Inc., has 4,500 units in finished goods. Ending inventory of finished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units. Calculate the budgeted unit sales for September. (Hint: Use the cost of goods sold model.)
20,000.
21,000.
21,400.
22,100.
What gets wet while drying?
(a)
Long Company’s budgeted sales are as at the picture:
The ending inventory of finished goods for each month must be equal to 40%
of the next month’s budgeted unit sales. Finished goods inventory on January 1 was 600 units. Calculate the number of units scheduled for production in March. (Hint: Use the cost of goods sold model.)
1,275.
1,400..
1,525.
1,625.
Where are the lakes always empty, the mountains always flat and the rivers always still?
(a)
Dax, Inc., collects its accounts receivable as follows: 30% in the month of sale, 60% in the next month, and 8% in the second month after the sale; 2% are uncollectible. Budgeted sales for the next four months are March, $16,000; April, $22,000; May, $19,000; and June, $23,000. Budgeted collections for June are
$20,060..
$20,380
$21,260.
$21,380..
Attainable standards, as compared to ideal standards,
do not allow for operating inefficiencies.
are more likely to elicit employee enthusiasm.
are more difficult to adjust for changes in worker efficiency.
are more difficult to achieve.
What kind of room has no doors or windows?
(a)
Budget slack is the situation in which
there is an intentional overstatement of expenses
there is an intentional overstatement of revenues.
the company is ahead of schedule in preparing the budget.
sales are slow during certain budget periods.
What would you find in the middle of HUNGARY?
(a)
