FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

What is the repayment (including interest) of financing during the second quarter (item d) ,in thousands of dollars?

A) $0.
B) $4.
C) $7.
D) $17.

E) B) and D)
F) A) and D)

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

A sales budget is given below for one of the products manufactured by the Key Co.: The inventory of finished goods at the end of each month should equal 20% of the next month's sales.However,on December 31,the finished goods inventory totalled only 4,000 units. Each unit of product requires three specialized electrical switches.Since the production of these specialized switches by Key's suppliers is sometimes irregular,the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs.This requirement had been met on January 1 of the current year. Required: Prepare a budget showing the quantity of switches to be purchased each month for January,February,and March,and in total for the quarter.

Correct Answer

verified

Beginning inventory,January ...

View Answer

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

What is the opening inventory in units for September?

What should be the amount of cash collected during the month of June?

What is the budget or schedule that provides necessary input data for the direct labour budget?

In a performance report,actual costs should be compared to budgeted costs at the original budgeted activity level.

The effect of responsibility accounting is to personalize the accounting system.

In companies that have "no lay-off" policies,the total direct labour cost for a budget period is computed by taking the total direct labour hours needed to make the budgeted output of completed units and multiplying them by the direct labour wage rate.

What is the borrowing required during the first quarter to meet the minimum cash balance (item b) ,in thousands of dollars?

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following best describes the production budget?

What total sales volume variance did Winnipeg Company report for January?

What were the total flexible budget expenses for January?

In a budgeted income statement for the month of February,what would be the net income?

A continuous or perpetual budget is one that covers a 12-month period,but is constantly adding a new month onto the end of the 12-month period as the current month is completed.

Zero-based budgeting requires managers to justify all costs of programs as if these programs were being proposed for the first time.

What is the variance for supplies costs in the flexible budget performance report for the month?

The following overhead data are for a department in a large company. Required: Prepare a report that would be useful in assessing how well costs were controlled in this department.

The company has budgeted to produce 25,000 units of Product T in June.The finished goods inventories on June 1 and June 30 were budgeted at 500 and 700 units,respectively.What would be the budgeted direct labour costs incurred in June?

Budgets are used for planning rather than for control of operations.

When choosing an activity measure for a flexible budget,it is best to choose an activity that is measured in dollars.