Santiago, one of the accountants for a company, was reviewing the direct materials purchases budget for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Santiago, one of the accountants for a company, was reviewing the direct materials purchases budget for the production line and noticed a 15% increase in the budget compared to the prior period budget. What could have caused the increase in the direct materials purchases budget, and who should he talk to about the cause? O The Increase in the direct materials purchases budget could have been caused by an increase in manufacturing overhead costs, and he should talk to the plant manager who provided the budget. The increase in the direct materials purchasing budget could have been caused by an increase in the purchasing price, and he should talk to the purchasing manager who provided the budget. O The increase in the direct materials purchases budget could have been caused by a decrease in the quantity of the direct materials needed, and he should talk to the production manager who prepared the budget. The increase in the direct materials purchases budget could have been caused by an increase in production direct labor costs, and he should talk to the production manager who prepared the budget. Santiago, one of the accountants for a company, was reviewing the direct materials purchases budget for the production line and noticed a 15% increase in the budget compared to the prior period budget. What could have caused the increase in the direct materials purchases budget, and who should he talk to about the cause? O The Increase in the direct materials purchases budget could have been caused by an increase in manufacturing overhead costs, and he should talk to the plant manager who provided the budget. The increase in the direct materials purchasing budget could have been caused by an increase in the purchasing price, and he should talk to the purchasing manager who provided the budget. O The increase in the direct materials purchases budget could have been caused by a decrease in the quantity of the direct materials needed, and he should talk to the production manager who prepared the budget. The increase in the direct materials purchases budget could have been caused by an increase in production direct labor costs, and he should talk to the production manager who prepared the budget.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below To determine the exact cause of the inc... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
Question 3 [4 Marks] Given a 2x1Gbps Etherchannel link, how many MiB per second can you transmit? Overhead not considered, Gb-Gigabit, MiB=Mebibyte Submit the steps of your calculation.
-
LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 2015, and is planning for...
-
The sales budget often uses the prior years sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes,...
-
=) An alternating emf of peak-to-peak value of 40 V is applied across the series combination of an inductor of inductance 100 mH, capacitor of capacitance 1 F and resistance 10052. Determine maximum...
-
Job costing: consulting firm WA Consulting Services Pty Ltd (WACS) provides consulting services throughout Western Austral and uses a job costing system to accumulate the cost of client projects....
-
Find the heat transfer per unit area through the composite wall in Figure P2-4. Assume one dimensional heat flow. Figure P2-4 = 150 win.C Ag = 30 kc" 50 kD = 70 B AD de 0.1 m2 T = 370C T = 66C 2.5 cm...
-
Using the steps outlined in the five-step transaction analysis, record the following transactions in the general journal for Laverden Plumbing, Inc. Explanations are not required. May 1 5 Paid...
-
In its May 31, 2017 annual report, Maloneck Ltd. (Maloneck) reported that it had inventory of $175,000 and accounts payable of $104,000 on May 31, 2016, and inventory of $196,000 and accounts payable...
-
A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The wholesaler's average demand is 70 drills a week, and the lead time from the plant is 3...
-
The file P02_07.xlsx includes data on 204 employees at the (fictional) company Beta Technologies. For this problem, consider this data set as the population frame. a. Using the method in this section...
-
"Helping a Business Owner with a Tax Problem" Kenneth, the owner of a catering company, needs business advice. He recently travelled to Massachusetts for a week for a trip and spent five days on...
-
Record the operations of a commercial company, through the perpetual inventory method, with the purpose of presenting timely financial information. Record the operation of accounting operations,...
-
How do you navigate the crucible of uncertainty, forging diamonds of wisdom from the raw materials of experience and reflection ?
-
Mr . June and Ms . July are married and have a joint account at the Scotia Bank. All the fund deposited from Mr . June s earnings. The T 5 slip issued by the Bank shows CAD 4 0 0 . 0 0 against both...
-
Solve =) (8) (9) 5x+6ydydx =
-
If f(x)=(6x+12) (3x-9), find f'(x) and f"(x). f'(x) = f"(x)=
-
5 kg of an article is bought at Rs 480, 1/3rd of it is sold at a profit of 20%. At what loss% should the remaining article be sold so that there is an overall profit of 3 1/3%?
-
What kind of rays are X-rays?
-
The customer-profitability analysis for Patio Grill Company, which is displayed in Exhibit 514, ranks customers by operating income. An alternative, often-used approach is to rank customers by sales...
-
PetroTech Company refines a variety of petrochemical products. The following data are from the firm's Amarillo plant. Work in process, July 1.............................................. 1,900,000...
-
The Golden Triangle Theater is a nonprofit enterprise in downtown Pittsburgh. The board of directors is considering an expansion of the theaters seating capacity, which will entail significant...
-
What are generally accepted accounting principles (GAAP)?
-
Describe the concepts, principles and constraints underlying financial statements.
-
Accounting is the process of: (a) recognising, measuring, recording and communicating. (b) identifying, measuring, recording and communicating. (c) identifying, recording, classifying and...
Study smarter with the SolutionInn App