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Study Resources (Accounting)

31) Which of the following is a benefit of budgeting? A) Focuses management's attention on the future B) Improved decision-making processes C) Improved motivation by employees D) All of the above 32) Which of the following statements about budgeting is NOT true? A) The operating budget should be prepared by top management, rather than mid-management personnel,.
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1) The master budget of a service company has more individual budget components than does the master budget of a manufacturing company. 2) The operating budgets of retailers and manufacturers are virtually identical. 3) Service companies use a "cost of goods sold, inventory, and purchases" budget to calculate the amount of merchandise.
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29) Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $4,000,000 in July $4,500,000 in August and $2,500,000 in September. Soft Shell sets it prices to average 35% gross profit on sales revenue..
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45) Biker Billy is a motorcycle dealership. Management expected to sell 800   bikes at an average sale price of $20,000. Variable expenses were budgeted to be 85% of sales revenue, and the total fixed expense was budgeted to be $2,500,000. The actual results for the year showed 1,000 bikes sold.
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61) Fairly Good Foods produces a specialty flavoured coffee that is sold to hotel chains by the case for $75 per case. For the upcoming quarter, Fairly Good Foods is projecting the following sales: January February March Cases of coffee 12,000 10,000 13,500 The budgeted cost of manufacturing each case is $50. Operating expenses are projected to be.
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62) Fairly Good Foods produces a specialty flavoured coffee that is sold to hotel chains by the case for $75 per case. For the upcoming quarter, Fairly Good Foods is projecting the following sales: January February March Cases of coffee 6,000 5,000 7,000 The budgeted cost of manufacturing each case is $40. Operating expenses are projected to be.
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1) A company's plan for purchases of property, plant, equipment, and other long-term assets is part of the budgeted balance sheet. 2) The budgeted cash collections from credit customers generally only reflects sales made in the current month. 3) The cash budget is prepared after the operating budget. 4) The cash budget is.
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31) Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $4,000,000 in July $4,500,000 in August and $2,500,000 in September. Soft Shell sets it prices to average 35% gross profit on sales revenue..
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47) Lisbon Company's budgeted data for the upcoming year showed total projected assets of $2,643,000 and total projected liabilities of $2,597,000. The balance of common stock for the year is projected to remain stable at $750,000. The shareholders' equity section of the balance sheet is made up of common stock.
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41) Bauer Corporation anticipates the following sales revenue over a five month period: November December January February March Sales revenue $20,000 $22,000 $26,000 $18,000 $21,000 Bauer Corporation's sales are 40% cash and 60% credit. The Bauer Corporation's collection history indicates that credit sales are collected as follows: Month of sale 20% Month after sale 50% Two months after sale 25% Uncollectible 5% Required: Prepare a cash collections budget for each month in.
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50) Piper Pasta Company produces a hand-processed gourmet pasta that is made with organic flour.  Five (5) pounds of organic flour are required per batch of gourmet pasta.  The organic flour costs $2.40 per pound.  The company needs to have 30% of the following month's production needs of organic flour.
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48) Lisbon Company's budgeted data for the upcoming year showed total projected assets of $2,551,000 and total projected liabilities of $1,624,000. The balance of common stock for the year is projected to remain stable at $500,000. The shareholders' equity section of the balance sheet is made up of common stock.
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31) Blaney Lumber's forecasted sales for April; May; June; and July are $200,000; $230,000; $190,000; and $240,000; respectively. Sales are 60% cash and 40% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at.
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11) Which of the following budgets usually shows separate sections for fixed and variable costs? A) Operating expense budget and manufacturing overhead budget B) Manufacturing overhead budget and production budget C) Production budget and manufacturing overhead budget D) Direct materials and manufacturing overhead budget 12) Which of the following budgets or financial statements is part.
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1) Budgeting is helpful to plan for cash inflows and outflows. 2) A budget is a qualitative expression of a plan that helps managers coordinate and implement the plan. 3) Budgets provide benchmarks that help managers evaluate performance. 4) Budgets communicate a variable set of plans throughout the company. 5) One of the key.
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21) The budget committee does all of the following EXCEPT: A) reviews submitted budgets. B) removes unwarranted slack. C) approves the final budget. D) determines the bonuses awarded to those who achieve budget targets. 22) Which of the following is the starting place for budgeting? A) Last year's budget B) Last year's actual amounts C) Zero D) Any of.
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21) Dell's payroll department preparing its budget based upon payroll expenses would be a(n): A) cost center. B) investment center. C) profit center. D) revenue center. 22) The fresh food section of a local grocery store reporting operating income for the current year would be a(n): A) cost center. B) investment center. C) profit center. D) revenue center. 23) Free.
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57) The Dover Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 50,000 units. Information about the various manufacturing overhead costs follows: Variable rate per unit Total fixed costs Indirect materials $1.20 Supplies $0.95 Indirect labour $0.60 $95,000 Plant utilities $0.10 $35,000 Repairs and maintenance $0.50 $15,000 Depreciation on plant and equipment $60,000 Insurance on plant and equipment $24,000 Plant.
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52) Timothy Company manufactures blenders.  The following selected data relates to Timothy Company's budgeted sales and inventory levels of the blenders for the upcoming quarter.  How many blenders should Timothy Company produce in November?  Show your calculations. 53) Lancelot Bicycles manufactures and sells bicycles.  Each bicycle requires four wheels. For September,.
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43) The Elliot Corporation sells hammocks.  On June 30, there were 70 hammocks in ending inventory and accounts receivable had a balance of $12,000.  Sales of hammocks (in units) have been budgeted at the following levels for the upcoming months: Accounts receivable, June 30 $12,000 Number of hammocks budgeted to be.
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11) Which of the following is a responsibility center whose success is measured not only by its income, but also by relating that income to its invested capital? A) Investment center B) Cost center C) Profit center D) Revenue center 12) The practice of directing executive attention to important deviations from budgeted amounts is called.
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30) Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $5,000,000 in July $6,000,000 in August and$3,000,000 in September. Soft Shell sets it prices to average 40% gross profit on sales revenue. The.
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41) Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly sales. The June operating expense budget includes total payroll of $12,000 with budgeted sales of $160,000. Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000. Depreciation and insurance.
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58) The Simcoe Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 40,000 units. Information about the various manufacturing overhead costs follows: Variable rate per unit Total fixed costs Indirect materials $2.40 Supplies $1.90 Indirect labour $1.20 $190,000 Plant utilities $0.20 $70,000 Repairs and maintenance $1.00 $30,000 Depreciation on plant and equipment $120,000 Insurance on plant.
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55) Woodlawn Company has prepared the following forecasts of monthly sales: January February March April Sales (in units) 3,200 4,790 3,700 3,210 Woodlawn Company has decided that the number of units in its inventory at the end of each month should equal 80% of next month's sales.  The budgeted cost per unit is $10. How many units should be in January's.
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46) Lisbon Company's budgeted data for the upcoming year showed total projected assets of $2,551,000 and total projected liabilities of $1,624,000. The balance of common stock for the year is projected to remain stable at $500,000. The shareholders' equity section of the balance sheet is made up of common stock.
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21) Newton Company is preparing its cash budget for the upcoming month.  The beginning cash balance for the month is expected to be $12,000.  Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000.  Newton Company wants to have an ending cash balance of $40,000.  The excess (deficiency) of.
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59) The Simcoe Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 90,000 units. Information about the various manufacturing overhead costs follows: Variable rate per unit Total fixed costs Indirect materials $1.25 Supplies $1.00 Indirect labour $0.75 $350,000 Plant utilities $0.30 $125,000 Repairs and maintenance $1.50 $50,000 Depreciation on plant and equipment $200,000 Insurance on plant and.
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63) Fairly Good Foods produces a specialty flavoured coffee that is sold to hotel chains by the case for $50 per case. For the upcoming quarter, Fairly Good Foods is projecting the following sales: January February March Cases of coffee 6,000 7,000 5,000 The budgeted cost of manufacturing each case is $20. Operating expenses are projected to be.
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1) There are four types of responsibility centers used to evaluate a company's performance. 2) Responsibility accounting performance reports compare budgets with actual results for each responsibility center. 3) Responsibility accounting is a system for evaluating the performance of each responsibility center and its manager. 4) A cost center is a responsibility center.
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11) Which description listed below best defines "financial budget"? A) A budget that projects cash inflows and outflows and the end of period budgeted balance sheet B) A company's plan for purchases of property, plant and equipment, and other long-term assets C) A budget that shows projected sales, purchases and operating expenses D) A.
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28) Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $5,000,000 in July $6,000,000 in August and$3,000,000 in September. Soft Shell sets it prices to average 35% gross profit on sales revenue. The.
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31) Horvath Corporation had beginning inventory of 22,000 units and expects sales of 76,500 units during the year.  Desired ending inventory is 19,500 units.  How many units should Horvath Corporation produce? A) 74,000 units B) 79,000 units C) 35,000 units D) 118,000 units 32) Kayla's Toys budgeted sales of $300,000 for the month of November.
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60) Fairly Good Foods produces a specialty flavoured coffee that is sold to hotel chains by the case for $100 per case. For the upcoming quarter, Fairly Good Foods is projecting the following sales: January February March Cases of coffee 10,000 9,000 11,500 The budgeted cost of manufacturing each case is $45. Operating expenses are projected to be.
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11) A zero-based budget is a budget that is continuously updated so that the next 12 months of operations are always budgeted. 12) The operating budgets project the collection and payment of cash, as well as forecast the company's budgeted balance sheet. 13) Budgets are used for all of the following EXCEPT: A).
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43) Biker Billy is a motorcycle dealership. Management expected to sell 1,000   bikes at an average sale price of $30,000. Variable expenses were budgeted to be 80% of sales revenue, and the total fixed expense was budgeted to be $2,500,000. The actual results for the year showed 800 bikes sold.
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