Accounting Two

Front 1

The sales budget is usually prepared before the produciton budget

Back 1

True

Front 2

The Cash budget is the starting point in the master budget

Back 2

False

Front 3

One of the advatages of self imposed budget is tha the person directly invovled in activity is more likely to be in position to make good budget estimates

Back 3

True

Front 4

The basic idea behind responsiablity accounting is tha top managment is responsible for preparring detail budget by which the performance of middle and lower mangagment will be evaluated

Back 4

False

Front 5

The sales budget often includes a schedule of expected cash collection

Back 5

True

Front 6

The number of units produce in a period can be determind by adding the expected sales to the desired ending inventory and teh n devidin teh by the invetory

Back 6

True

Front 7

The manufatory overhead budget provides a scheduel of all cost of produciton otehr than direct materials and direct labor

Back 7

True

Front 8

Both variable and fixed manufactruing overhead cost are included in teh selling and administative expense budget

Back 8

False

Front 9

On a cash budget the total amoutnt of buget cash payments for manufacturing overhead should not included any amounts for depreciation on factory equipment

Back 9

True

Front 10

which of the folloing are prpared before the produciton budget

Back 10

Not before matrials yes before sales budgets.

Front 11

Which of the folloing represents the normal sequance in which that below budget are prepare.
Balance
sales
Income

Back 11

sales, income, balance sheet.

Front 12

The budget method that maintance a constatnt tweleve month horizon by adding ....

Back 12

contiounous.

Front 13

In prepareing a master budget top management is generally best able t o

Back 13

providing a prespective on the company as a whole

Front 14

Which of the following is not an objective of the budgets process

Back 14

to ensure the company contiounous to grow

Front 15

Th direct labor is based on

Back 15

the require production for teh period

Front 16

Which of teh following might be included as a disburstment on a cash budget

Back 16

Depreciation on factory equipement no.
Income taxed to be paid yes.

Front 17

Direct material quantiy standard generally includes an allowance for waster

Back 17

true

Front 18

Practical standards allow for normal machine downtime and employee rest

Back 18

True

Front 19

A material price variance in favorable than actual price exceeds the staandard price

Back 19

False

Front 20

A unfavorable material quantity variance occours when the actual quanity used in production is less than the standared quantiy allowed for the actual output of the period

Back 20

an unfaborable labor rare.

Front 21

a standard can be regarde as teh budget cost per unit of product

Back 21

ture

Front 22

which of the flowwing statements concering ideal statndards is incorrect?

Back 22

Ideal stand. are better suited for cash budgeting thean practial standard.

Front 23

Under traditonal standards cost, which of the following would commonly be included when settin ga standard quantity for direct material

Back 23

an allwoance for material wasted during produciotn yes. An allowance for matterial rejected during prodution yes

Front 24

Poor quality material could have a an unfavorable effect on

Back 24

labor effiance and matrial output