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1.Question :(TCO 2) Operating budgets and financial budgets
2.Question :(TCO 2) To gain the benefits of budgeting, ________ must
understand and support the budget.
3.Question :(TCO 2) Which budget is not necessary to prepare the
budgeted balance sheet?
4.Question :(TCO 2) A feature of a standard-costing system is that the
costs of every product or service planned to be worked on during the
period can be computed at the start of that period. This feature of
standard costing makes it possible to
5.Question :(TCO 2) An unfavorable variance indicates that
6.Question :(TCO 2) Which of the following statements is true about
overhead cost variance analysis using activity-based costing?
7.Question :(TCO 2) Overhead costs have been increasing due to all of
the following except
8.Question :(TCO 2) Katie Enterprises reports the year-end information
from 20X8 as follows: Sales (70,000 units) $560,000; Cost of goods sold
210,000; Gross margin 350,000; Operating expenses 200,000; Operating
income $150,000. Katie is developing the 20X9 budget. In 20X9, the
company would like to increase selling prices by 4%, and as a result
expects a decrease in sales volume of 10%. All other operating expenses
are expected to remain constant. Assume that COGS is a variable cost
and that operating expenses are a fixed cost. What is budgeted sales for
20X9?
2. 9.Question :(TCO 2) Hester Company budgets on an annual basis for its
fiscal year. The following beginning and ending inventory levels (in
units) are planned for the fiscal year of July 1, 2008, through June 30,
2009.
July 1, 2008 June 30, 2009
Raw material (note) 40,000 10,000
Work in process 8,000 8,000
Finished goods 30,000 5,000
(note) Three units of raw material are needed to produce each unit of
finished product.
If Hester Company plans to sell 600,000 units during the 2008-2009
fiscal year, the number of units it would have to manufacture during the
year would be
10.Question :(TCO 2) Information pertaining to Brenton Corporation's
sales revenue is presented in the following table:
February March April
Cash Sales $160,000 $150,000 $120,000
Credit Sales 300,000 400,000 280,000
Total Sales $460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of the
credit sales that are collectible, 60% are collected in the month of sale
and the remainder in the month following the sale. Cost of purchases of
inventory each month are 70% of the next month's projected total sales.
ll purchases of inventory are on account; 25% are paid in the month of
purchase, and the remainder is paid in the month following the purchase.
Brenton's budgeted total cash payments in March for inventory
purchases are
