Chap 6 Practice Quiz

Chap 6 Practice Quiz - What will be the number of chests...

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Accounting 230 Practice Quiz for Chapter 6 1. Changing conditions call for changes in plans. Therefore, budgets should: A. be administered rigidly. B. be flexible. C. be developed for very short periods of time. D. be required for every organization. 2. The direct materials usage budget is based on: A. the units to be produced during a period. B. budgeted sales dollars. C. the predetermined factory overhead rate. D. the amount of labor hours worked. 3. Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 200X are as follows: Month Sales January 10,000 February 14,000 March 13,000 Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month’s sales. April 200X sales are expected to total 16,000 units.
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Unformatted text preview: What will be the number of chests produced in January 200X? A. 8,800 chests B. 11,200 chests C. 13,000 chests D. 14,200 chests 4. The major types of responsibility centers are: A. profit, nonprofit, and governmental. B. profit, sales, and direct cost. C. revenue, profit, income, and cost. D. revenue, profit, cost and investment. 5. Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000 and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000. Cash used to pay accounts payable for the month totaled: A. $244,000 B. $240,000 C. $156,000 D. $152,000...
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Chap 6 Practice Quiz - What will be the number of chests...

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