1. Which of the following lists includes only financial budgets?
A. Capital expenditure budget, sales budget, and budgeted income statement.
B. Cash budget, production budget, and capital expenditures budget.
C. Budgeted income statement, budgeted balance
D. Budgeted balance sheet, cash budget, and the capital expenditures budget
Direct materials inventories are kept in pounds in Byrd Company, and the total pounds of direct materials needed for production is 9,500. If the beginning inventory is 1,000 pounds and the desired ending inventory is 2,200 pounds, the total pounds to be p
A. 10700
Operating budgets include all of the following except the (chapter 9)
a. sales budget.
b. production budget.
c. capital expenditure budget.
d. budgeted income statement.
c. capital expenditure budget.
Each of the other budgets in the master budget depends on the
a. production budget.
b. sales budget.
c. budgeted income statement.
d. cash budget.
b. sales budget.
In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to
a. beginning direct materials.
b. beginning direct materials less desired ending direct materials.
c. desire
c. desired ending direct materials.
desired ending direct materials less beginning direct materials.
Ace Company monitors its managers' performance using a static budget. Which one of the following situations will provide the fairest evaluation for those managers?
a. When the company performs at the same activity level as the static budget level.
b. When
a.When the company performs at the same activity level as the static budget level.
For which of the following costs is a static budget most appropriate?
a. Variable overhead costs.
b. Fixed overhead costs.
c. Actual costs.
Uncontrollable costs
b. Fixed overhead costs. Static usually stays the same like fixed cost
A projection of budget data for various levels of activity is a
a. static budget.
b. fixed budget.
c. flexible budget.
d. variable budget.
c. flexible budget.
All of the following statements are correct about management by exception except it
a. means that top management has to investigate every budget difference.
b. enables top management to focus on problem areas that need attention.
c. requires that there mu
means that top management has to investigate every budget difference.
Which one of the statements is correct about controllable costs?
a. Allocated costs are controllable.
b. Variable costs are controllable and fixed costs are not.
c. A cost is controllable if it is incurred directly in a manager's division or segment.
d. M
A cost is controllable if it is incurred directly in a manager's division or segment.
The accounting department of a manufacturing company is an example of
a. an investment center.
b. a contribution center.
c. a cost center.
d. a profit center.
a cost center.
Which one of the following is not an advantage of standard costing?
a. It is useful in setting selling prices.
b. It simplifies costing in inventories.
c. It determines who is responsible for variances.
d. It facilitates management planning.
It determines who is responsible for variances.
A variance is favorable if actual costs are
a. less than budgeted costs.
b. greater than standard costs.
c. less than standard costs.
d. greater than budgeted costs.
less than budgeted costs.
1. A positive net present value means that the:
a. project's rate of return is less than the cutoff rate.
b. project's rate of return equals the required rate of return.
c. project's rate of return exceeds the required rate of return.
d. project is unacce
project's rate of return exceeds the required rate of return.
When calculating an investment's net present value, which table is used when the annual cash flows are even or equal?
a. Future value of 1 table.
b. Future value of an annuity table.
c. Present value of 1 table.
d. Present value of an annuity table.
d. Present value of an annuity table.
Which of the following is based directly on accrual accounting data?
a. Cash payback period.
b. Internal rate of return.
c. Net present value.
d. Annual rate of return.
d. Annual rate of return.
Which of the following is incorrect about the annual rate of return technique?
a. The time value of money is considered.
b. The accounting terms used are familiar to management.
c. The timing of the cash inflows is not considered.
d. The calculation is si
a. The time value of money is considered.
A positive net present value indicates that:
a. the rate of return on the investment is greater than the discount rate.
b. the rate of return on the investment is equal to the discount rate.
c. there is no connection between the investment's rate of retur
the rate of return on the investment is greater than the discount rate.