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Answer the following questions using the information below: The following information pertains to the January operating budget for Casey Corporation, a retailer: Budgeted sales are $200,000 for January Collections of sales are 50% in the month of sale and 50% the next month Cost of goods sold averages 70% of sales Merchandise purchases total.
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11) ABC reveals opportunities to focus on value added activities. 12) Activity-based management refers to the use of information derived from ABC analysis to analyze and improve operations. 13) Information derived from an ABC analysis might be used to eliminate nonvalue-added activities. 14) ABC costing systems are primarily for use.
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Answer the following questions using the information below: Monetary Company has the following sales budget for the last six months of 2011: July              $200,000              October              $ 180,000 August              160,000November              200,000 September              220,000December              188,000 Historically, the cash collection of sales has been as follows: 65% of sales collected in the month of sale, 25% of sales collected.
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4) Kaizen budgeting involves: A) large cost reductions B) management directed improvements C) continual small cost reductions D) continual small revenue increases 5) Kaizen budgeting is driven by: A) management B) employees C) stockholders D) creditors Answer the following questions using the information below: Sherry and John Enterprises are using the kaizen approach to budgeting for 2011. The budgeted income.
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65) The manufacturing labor budget depends on wage rates, production methods, and hiring plans. 66) The manufacturing labor budget depends on wage rates, production methods, and hiring plans. 67) If inventoriable costs in the operating budget are going to be in accordance with Generally Accepted Accounting Principles (GAAP), they include.
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11) A budget is the quantitative expression of a proposed plan of action by management 12) A budget generally includes both financial and nonfinancial aspects of the 13) Budgeted financial statements are also referred to as pro forma statements. 14) Budgeting includes only the financial aspects of the plan and NOT any.
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47) Shamokin Manufacturing produces two products, Big and Bigger. Shamokin expects to sell 10,000 units of product Bigger and to have an inventory of 2,000 units of Bigger on hand at the end of the period. Currently, Shamokin has 800 units of Bigger on hand. Bigger requires two labor operations,.
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Answer the following questions using the information below: Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2010, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2010 Velshi Printers has decided to evaluate the use of additional.
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55) Activity-based budgeting: A) uses one cost driver such as direct labor-hours B) uses only output-based cost drivers such as units sold C) focuses on activities necessary to produce and sell products and services D) classifies costs by functional area within the value chain 56) Activity-based budgeting includes all the.
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Everclean Filter Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and had used a budgeted selling price of $11 per unit.   ActualBudgeted Units sold306,000 units300,000 units Variable costs$965,000$950,000 Fixed costs$ 53,000$ 50,000 13) What is the static-budget variance of revenues? A) $60,000 favorable B) $240,000.
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1) Multinational budgeting is more complex than budgeting in a domestic environment due to the possibility of: A) exchange rate fluctuations B) sophisticated techniques used by multinationals such as forward, future, and options contracts C) different political, legal, and economic environments faced by multinationals D) All of these answers are.
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23) The cost of goods sold budget requires all of the following budgets EXCEPT: A) direct material cost budget B) manufacturing overhead cost budget C) distribution cost budget D) direct manufacturing labor cost budget 24) Grandma's Baskets Company expects to manufacture and sell 50,000 baskets in 2011 for $5 each. There are 4,000 baskets in.
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21) An organization structure is an arrangement of lines of responsibility within the entity. 22) A responsibility center can be structured to promote better alignment of individual and company goals. 23) Management will most likely behave the same way if a department is structured as a cost center or if.
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15) Bebee Corporation currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $18,000 per month. Manufacturing overhead is all fixed costs. What is the flexible budget for 20,000 and 40,000 units, respectively? A).
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23) The flexible budget will report ________ for variable costs. A) $256,000 B) $300,000 C) $240,000 D) $320,000 24) The flexible budget will report ________ for the fixed costs. A) $229,000 B) $225,000 C) $180,000 D) $286,250 25) The flexible-budget variance for variable costs is: A) $16,000 unfavorable B) $60,000.
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4) An unfavorable sales-volume variance could result from: A) decreased demand for the product B) competitors taking market share C) customer dissatisfaction with the product D) All of these answers are correct. 5) If a sales-volume variance was caused by poor-quality products, then the ________ would be in the best.
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18) Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply: BRASSCHROMEWHITE Projected sales in units30,00050,00040,000 PER UNIT data: Selling price$40$20$30 Direct materials$ 8$ 4$ 8 Direct.
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25) The following information pertains to Amigo Corporation: MonthSalesPurchases July$30,000$10,000 August34,00012,000 September38,00014,000 October42,00016,000 November48,00018,000 December60,00020,000 ?Cash is collected from customers in the following manner: Month of sale (2% cash discount)              30% Month following sale50% Two months following sale15% Amount uncollectible5% ?40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required:.
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Answer the following questions using the information below: Monster Vehicle Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.    Car Rental               Truck Rental Number of Vehicles in fleet700 300 Number of employees15050 Sales$750,000$375,000 10) If administrative expense of $62,500 is.
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24) How are cost drivers selected in activity-based costing systems? 25) Do activity-based costing systems always provide more accurate product costs than conventional cost systems? Why or why not? 26) How can the need for a more refined costing system be identified? 27) What is activity-based management and how can.
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14) The Japanese use kaizen to mean financing alternatives. 15) Kaizen budgeting does NOT make sense for cost centers. 16) Kaizen budgeting encourages major improvements rather than small incremental changes. 17) Kaizen budgeting allows for budgeting of small incremental increases in costs each budgeting period to allow for the effects of.
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Answer the following questions using the information below: Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:   Number ofNumber ofNumber of ProductSetupsComponentsDirect Labor Hours Standard1510750 Deluxe3515500 Overhead costs$15,000$25,000 11) Assume a traditional costing system applies the $40,000 of overhead costs based.
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1) Responsibility accounting: A) is a system that measures the plans, budgets, actions, and actual results of a responsibility center B) is an arrangement of lines of responsibility within the organization C) explicitly incorporates continuous improvement anticipated during the budget period D) examines how a result will change if the original plan is.
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1) Put the following ABC implementation steps in order: ACompute the allocation rates. BCompute the total cost of the products. CIdentify the products that are the cost objects. DSelect the cost allocation bases. A) DACB B) DBCA C) BADC D) CDAB 2) ABC systems identify ________ costs used by products. A) all B) short-term.
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Answer the following questions using the information below: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost PoolOverhead CostsCost driverActivity level Supervision of direct labor$320,000Direct labor-hours800,000 Machine maintenance$120,000Machine-hours960,000 Facility rent$200,000Square feet of area100,000 Total overhead costs$640,000 The accounting records show the Mossman Job consumed.
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4) Challenging budgets tend to: A) decrease line-management participation in attaining corporate goals B) increase failure C) increase anxiety without motivation D) motivate improved performance 5) Actual results should NOT be compared against past performance because: A) past results may contain mistakes and substandard performance B) past results will never happen again C).
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20) Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below.
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77) Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing. Beginning inventory includes 1,500 feet of framing, 500 square feet of glass,.
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24) If a cost is considered controllable, it indicates that all aspects of the cost are under the control of the manager of the responsibility center to which that cost is assigned. 25) To create greater commitment to the budget, lower-level managers should participate in creating the budget. 26) Allscott Company.
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11) According to an ABC system, S5 uses a disproportionately: A) smaller amount of unit-level costs B) larger amount of unit-level costs C) smaller amount of batch-level costs D) larger amount of batch-level costs 12) Unit-level measures can distort product costing because the demand for overhead resources may be driven.
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Answer the following questions using the information below: Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2010, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages. For 2010 Velshi Printers has decided to evaluate the use of additional.
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80) Describe operating and financial budgets and give at least two examples of each discussed in the textbook. 81) Discuss the importance of the sales forecast and items that influence its accuracy. 1) Financial planning models: A) are not used in the budgeting process B) are not useful for sensitivity analysis C) are.
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11) A responsibility accounting system could: A) exclude all uncontrollable costs B) exclude controllable costs C) segregate uncontrollable costs from controllable costs D) Both A and C are correct. 12) Which statement about controllability is NOT true: A) few costs are clearly under the sole influence of one manager B) holds managers responsible for uncontrollable costs C) with.
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22) At Deutschland Electronics, product lines are charged for call center support costs based on sales revenue. Last year's summary of call center operations revealed the following: Surveillance ProductsSpecialty Products Number of calls for information1,0004,000 Average call length for information3 minutes8 minutes Number of calls for warranties3001,200 Average call length for warranties7 minutes15 minutes Sales.
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3) The operating budget process generally concludes with the preparation of the: A) production budget B) distribution budget C) research and development budget D) budgeted income statement 4) Which budget is NOT necessary to prepare the budgeted balance sheet? A) cash budget B) budgeted statement of cash flows C) budgeted income statement D) revenues.
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74) Lubriderm Corporation has the following budgeted sales for the next six-month period: MonthUnit Sales June90,000 July120,000 August210,000 September150,000 October180,000 November120,000 There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five.
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21) Describe the benefits to an organization of preparing an operating budget. 22) Bob and Dale have just purchased a small honey manufacturing company that was having financial difficulties. After a brief operating period, they decided that the company's main problem was the lack of any financial planning. The company.
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Answer the following questions using the information below: Brent Enterprises reports the year-end information from 2011 as follows: Sales (35,000 units)$280,000 Cost of goods sold105,000 Gross margin175,000 Operating expenses100,000 Operating income$ 75,000 Brent is developing the 2012 budget. In 2012 the company would like to increase selling prices by 4%, and as a result expects a.
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16) Rachel's Pet Supply Corporation manufactures two models of grooming stations, a standard and a deluxe model. The following activity and cost information has been compiled: Number ofNumber ofNumber of ProductSetupsComponentsDirect Labor Hours Standard330650 Deluxe750150 Overhead costs$40,000$120,000 Assume a traditional costing system applies the $160,000 of overhead costs based on direct labor hours. a.What.
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Answer the following questions using the information below: Nichols, Inc., manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their.
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