Which of the following do not serve as a source of data while preparing a cash budget?
Question:
Which of the following do not serve as a source of data while preparing a cash budget?
A sales budget | ||
Collection records | ||
A budgeted balance sheet | ||
A budgeted income statement |
Which of the following is true of standard costing?
It uses estimates that are based only on past costs. | ||
It is the same as normal costing. | ||
It cannot be used to manage cost centers. | ||
It can be used in any type of business. |
Which of the following is true of the cash budget?
It is prepared first in the master budget. | ||
It is also called budgeted balance sheet. | ||
It consists of cash receipts and cash payments. | ||
It is the base for the preparation of the sales budget. |
A direct labor rate variance would occur in which of the following?
When a production employee takes an unplanned break | ||
When a production employee spends more time producing one product than was expected | ||
When a low-paid production employee performs a task higher than his or her assigned level | ||
When a production employee incurs overtime hours at the same hourly rate as regular pay |
The linking of employee compensation to the achievement of measurable business targets is called
compensation goal. | ||
performance-based compensation. | ||
performance target. | ||
performance linkage. |
After management has set short-term goals, the budgeting process typically starts with
a clearly defined timetable of events. | ||
input only from the accounting personnel. | ||
the naming of an efficient coordinator or director. | ||
a set of procedures or instructions. |
The balanced scorecard is a framework that links the perspectives of an organization’s stakeholders with its
goals and vision, performance goals, strategic plan, and financial resources. | ||
mission and overall plan, performance measures, departmental plans, and resources. | ||
mission and vision, performance measures, strategic plans, and resources. | ||
mission and vision, performance goals, overall plan, and resources. |
For purposes of computing EVA, the minimum desired rate or return on an investment is known as
ROI. | ||||||||||||||
cost of capital. | ||||||||||||||
residual income. | ||||||||||||||
profit margin. Variable costing is utilized to evaluate the performance of
|
Which of the following costs generally do not include standard unit costs?
Direct materials costs | ||
Indirect materials costs | ||
Board of directors’ salary | ||
Depreciation on factory machine |
A manager can improve EVA by
decreasing assets. | ||
increasing tax expense. | ||
increasing cost of capital. | ||
decreasing current liabilities. |
Which of the following budgets must managers prepare before they can prepare a direct materials purchases budget?
Labor budget | ||
Overhead budget | ||
Production budget | ||
Cost of goods manufactured budget |
Which of the following performance measures focus on short-term financial performance?
Economic value added | ||
Residual income | ||
ROI | ||
All of these choices |
The total fixed overhead variance is comprised of the
variable overhead efficiency and fixed variances. | ||
fixed overhead budget and volume variances. | ||
labor efficiency and rate variances. | ||
fixed overhead spending and efficiency variances. |
The formula used to compute budgeted total cost at any level of activity is presented in the
flexible budget. | ||
performance report. | ||
static budget. | ||
cash flow forecast. |
A responsibility center in which the relationship between resources and products or services produced is not well defined is known as a(n)
investment center. | ||
profit center. | ||
cost center. | ||
discretionary cost center. |
“The difference between actual hours worked and standard hours allowed for the good units produced, multiplied by the standard labor rate” is a description of the
direct labor rate variance. | ||
direct labor efficiency variance. | ||
total direct labor cost variance. | ||
direct labor quantity variance. |
Which of the following is a drawback of using standard costing system?
It can be expensive and time-consuming to implement. | ||
It distorts actual cost information. | ||
It is often inaccurate. | ||
It is applicable only to manufacturing businesses, not service businesses. |
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis