In the budgeting process, what does budgetary slack refer to? The method of adjusting budgets to reflect actual performance. The practice of overestimating budgeted expenses and underestimating budgeted revenues. The strategy of reducing costs to meet budget constraints. The process of allocating additional funds for unexpected expenses.

The practice of overestimating budgeted expenses and underestimating budgeted revenues.

Which of the following would NOT appear as a debit entry in the Work In Process (WIP) Inventory account when manufacturing a unit of product? Applied manufacturing overhead. Direct materials costs. Cost of goods manufactured (COGM). Direct labor costs.

Cost of goods manufactured (COGM).

Within the relevant range, if there is a change in the level of the cost driver, then ________. Neither total fixed costs nor total variable costs will change. Total fixed costs will remain the same and total variable costs will change. Both total fixed costs and total variable costs will change. Total fixed costs will change and total variable costs will remain the same.

Total fixed costs will remain the same and total variable costs will change.

Distinguish between actual costing and normal costing. Both use actual indirect-cost rates. Actual costing uses actual indirect-cost rates, while normal costing uses budgeted rates. Normal costing uses actual indirect-cost rates, while actual costing uses budgeted rates. Both use budgeted indirect-cost rates.

Actual costing uses actual indirect-cost rates, while normal costing uses budgeted rates.

Which of the following is an assumption of CVP analysis? Total costs can be divided into a fixed component and a component that is variable with respect to the level of output. Fixed costs vary with the level of output. Sales price per unit changes with the level of output. Variable costs per unit change with the level of output.

Total costs can be divided into a fixed component and a component that is variable with respect to the level of output.

In the budgeting process, budgetary slack refers to the Strategy of reducing costs to meet budget constraints. Practice of overestimating budgeted expenses and underestimating budgeted revenues. Process of allocating additional funds for unexpected expenses. Method of adjusting budgets to reflect actual performance.

Practice of overestimating budgeted expenses and underestimating budgeted revenues.

Managerial Accounting: Budgetary Analysis, Cost Behavior & Break-Even Point Calculations

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(16)

In the budgeting process, what does budgetary slack refer to?

Within the Manufacturing Overhead Control account, if no manufacturing overhead has been applied, what will the posted entries for 'actual manufacturing overhead' generate?

Which of the following would NOT appear as a debit entry in the Work In Process (WIP) Inventory account when manufacturing a unit of product?

Within the relevant range, if there is a change in the level of the cost driver, then ________.

When 25,000 units are produced, fixed costs are $21.00 per unit. Therefore, when 20,000 units are produced, fixed costs will ________.

If the contribution margin ratio is 0.60, targeted operating income is $95,000, and targeted sales volume in dollars is $530,000, then the degree of operating leverage is ________.

Distinguish between actual costing and normal costing.

Which of the following is an assumption of CVP analysis?

Which of the following costs would decrease if production levels were increased within the relevant range?

In the budgeting process, budgetary slack refers to the

Johnson Retail has seven stores in Vermont. Store managers meet annually to discuss budgets created by finance. Which of the following is true?

Donald, of Helen Bakery, estimates the sale of 175 cookies and production of 230 cookies for January. Each cookie requires 10 grams of flour and costs $0.40 per gram. The budgeted ending flour requirement is estimated to be 500 grams and beginning flour inventory is 290 grams. How much flour needs to be purchased, and how much will it cost?

When management sets expectations that are high, achievable, and clearly communicated, what is the likely outcome?

When computing variances related to a flexible budget, a favorable (F) variance causes a(n)

Is it the same thing to say a company incurs MOH costs and a company applies MOH costs? Yes or No?

Patrick prepared a production budget for a 6-month period for Hshell Corporation. At the end of the current month, Patrick revises the budgeted beginning inventory of the next month with an actual ending inventory of the current month. Which type of budget is Patrick using?

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Managerial Accounting: Budgetary Analysis, Cost Behavior & Break-Even Point Calculations

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