Exam Chapters 8-9 answers

Exam Chapters 8-9 answers - Cost Accounting Exam Chapters...

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Cost Accounting Exam Chapters 8-9 1. Long-range planning carried out by top management is referred to as ______________________________. ANS: strategic planning 2. The starting point for any master budget is the _________________________. ANS: sales budget 3. A budget that is prepared by adding a new budget month as each month expires is referred to as a _________________________________________. ANS: continuous budget. 4. If revenues are intentionally underestimated during the budgeting process, _____________________ has been created. ANS: budgetary slack 5. The level of activity where a company’s total revenues equal total costs is referred to as the ______________________________. ANS: break-even point 6. The preparation of an organization's budget a. forces management to look ahead and try to see the future of the organization. b. requires that the entire management team work together to make and carry out the yearly plan. c. makes performance review possible at all levels of management. d. all of the above. ANS: D DIF: Easy OBJ: 8-1 7. When actual performance varies from the budgeted performance, managers will be more likely to revise future budgets if the variances were a. controllable rather than uncontrollable. b. uncontrollable rather than controllable. c. favorable rather than unfavorable. d. small. ANS: B DIF: Moderate OBJ: 8-1 8. Which of the following is not an "operating" budget? a. sales budget b. production budget c. purchases budget d. capital budget ANS: D DIF: Easy OBJ: 8-3 9. Budgeted production for a period is equal to a. the beginning inventory + sales - the ending inventory. b. the ending inventory + sales - the beginning inventory. c. the ending inventory + the beginning inventory - sales.
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d. sales - the beginning inventory + purchases. ANS: B DIF: Easy OBJ: 8-4 10. The amount of raw material purchased in a period may be different than the amount of material used that period because a. the number of units sold may be different from the number of units produced. b. finished goods inventory may fluctuate during the period. c. the raw material inventory may increase/decrease during the period. d. companies often pay for material in the period after it is purchased. ANS: C DIF: Moderate OBJ: 8-4 11. If a company has a policy of maintaining an inventory of finished goods at a specified percentage of the next month's budgeted sales, budgeted production for January will exceed budgeted sales for January when budgeted a. February sales exceed budgeted January sales. b.
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This note was uploaded on 10/06/2008 for the course ACT 3395 taught by Professor Cluskey during the Spring '08 term at Troy.

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Exam Chapters 8-9 answers - Cost Accounting Exam Chapters...

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