Chapter 21 quiz.docx

Chapter 21 quiz.docx - v Item 1 Score 1[lll[1 of 1 The...

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Unformatted text preview: v Item 1 - Score: 1[lll]% [1 of 1} The guidelines for setting goals for a budget that will motivate em plovees and managers include Cl setting goals as high as possible. CI setting minimal goals so that people do not feel bad if thev are not reached. {i} setting reasonable and attainable goals. 9 Cl developing goals without employee input. Feedback: Correct. Reasonable, attainable goals are more likely to motivate employees and managers. 0 bjectiv'e Association - 1. Describe budgeting, its objectives, and its impact on human behavior. v Item 2 - Score: 1[lll]% [1 of 1} The budget process involves doing all the following excegt CI establishing specific goals. CI executing plans to achieve the goals. {it} not giving raises to all managers who fail to achieve operational goals specified in 9 the budget. CI penodicallv comparing actual results 1.vith the goals. Feedback: Correct. This is not a part of the budgeting process. This type of decision 1.vould ignore other possible contributing factors. v Item 3 — Score: 1oosr1or1} When management seelcs to achieve personal departmental objectives that may vvorlc to the detriment of the entire company. the manager is experiencing CI budgetary slack. CI padding. CI cushions. {"3 goal conflict. 9 Feedback: Correct. Goal conflict. such as a desire to have a specific department look good as opposed to staying focused on the goals of the company as a whole, can be detrimental to the entire company. Objective Association - 1. Describe budgeting, its objectives, and its impact on human behavior. at Item 4 — Score: 1fllfl't‘i: {1 of 1} The method of developing budget estimates that requires managers to estimate sales, production, and other operating data as though operations are being started for the first time is budgeting. C' flexible CI continuous 0 master {it zero-based 9 Feedback: Correct. The method of developing budget estimates that requires managers to estimate sales. production, and other operating data as though operations are being started for the first time is zero-based budgeting. v Item 5 — Score: 1tlll1‘h': [1 of 1} 1Illli'ltich of the following is n_ot a benefit of using a computerized budgeting system? CI Such systems speed up and reduce the cost of preparing the budget. l3 Such systems require more employees to be involved in the process. 9 CI Such systems make revisions easier with faster results. D Such systems can streamline the budgeting process. Feedback: Correct. Computerized systems do not require more people to be involved, but they often do make it easier for diverse input to be aggregated and summarized. Objective Association - 2. Describe the basic elements ofthe budget process, the two major types of budgeting, and the use of computers in budgeting. v Item 5 — Score: 1D%|[1 of1} For February, sales revenue is $Eflfl,flflfl; sales commissions are 5% of sales; the sales manager's salary is $QE,DDD; aclyertising expenses are $Bflflflfl; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,1EID plus 1i’2 of 1% of sales. Total selling expenses for the month of February are: cs szdssoo (9 O $241,1oo O caisson 0 sensor] Feedback: Correct. Sales commissions I-Elflflflflt} x 5% MEDDI Sales manager’ s salary — E-Eflfll * uyerlising expenses — Bflflfll Miscellaneous selling expense m2,1[l + {EDDHDD 15%} Shipping expenses I-Elflflflflfl x 2% 151%“ m otal selling expenses — $245.5Dl Objective Association - 2. Describe the basic elements oftbe budget process, the two major types of budgeting, and the use of computers in budgeting. v Item T - Score: 1flfl'h': {1 of 1} Developing the annual budget O usually begins on the first day of the prior year. 0 usually begins on the first day of the fiscal year. Q is not necessary. l3 usually begins several months prior to the end of the current year. 9 Feedback: Correct. Developing the annual budget usually begins several months prior to the end of the current year. Objective Associathn - 2. Describe the basic elements of the budget process, the two major types of budgeting, and the use of computers in budgeting. v Item 8 - Score: 1flfl'h': {1 of 1} An integrated set of operating, invesfing, and financing budgets for a period of time is called a budget. 0 flexible l3 master 9 O continuous O zero-based Feedback: Correct. A. master budget is an integrated set of operating, investing, and financing budgets for a period of fime. v Item 9 - Score: 1flfl% {1 of 1} Production budgets are used to prepare 1.vhich of the following budgets? {it direct mate rials purchases. direct labor cost, factory overhead cost 9 Ci capital expenditures budget Cl sales in units 0 sales in dollars Feedback: Correct. The production budget is the necessary start for the material, labor, and factory overhead budgets. Objective Association - 3. Describe the master budget for a manufacturing company. vltem1fl —Score:1l]fl'lln[1of1} 1it"ii'ltich of the following is n_ot a necessary component when developing the budgeted income statement as part of the master budget? Cl selling and administrative expenses budget ‘3 capital expenditures budget 9 O factory overhead cost budget Cl production budget Feedback: Correct. The capital expenditures budget is a component of the forecasted balance sheet and not the income statement. v Item 11 -Score: 1|]D‘H. (1 of1} Sleep Master, Inc. manufactures bedding sets. The budgeted production is for SIDED comforters in 2111?. Each comforter requires 5 yards of material. The estimated January 1, EMT, beginning inventory is 3110131] yards. The desired ending balance is 2?,[1110 yards of material. If the material costs $1.5D per yard, determine the materials budget for 2&1? O $51spou O $513pou re ssorpou (~21 O srzspou Feedback: ICorrect. ards of material required for production: Comforter material {storm x 5 yards} 342,1]fll Plus desired ending inventory December 31, 21:11? 2? DUI saun- Less estimated beginning inventory, January 1, 2131? 31 [till Total yards to purchase 338,1]fll Unitpn'ce per yard 31.5I otal direct material to be purchased 1'EDT1DD' o h iec‘l‘iue flesnniatinn vltem12 —Score: 1|]D'itn {1 of1} Production and sales estimates for March for the Streamline Systems Co. are as follows: Estimated inventory {units}, March 1 115111] Desired in-«rentoryI (u nit}, March 31 20.3111] Expected sales volume {units} 35,DUD Unit sales price $15 The number of units expected to be manufactured in March is: D seams {in arson (9 0 11am 0 ?Z,Bt]fl Feedback: Correct. Expected units to be sold 35,DI Plus desired ending inventory, March 31 21] SDI ssaon Less estimated beginning inventory, March 1 1? EDI Total units to be produced @ Objective Association vltem13 -Score: 1|][l‘lfi {1 of1} The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2111? are as follows: January 1 finished goods. $?65,Uflfl; December 31 finished goods. $5-1Elflflfl; cost of goods sold for the year. $2,EED,DD. The budgeted cost of goods manufactured for the year is: U $1.255,DDU {it $2.335,Dflfl '9 C) $3.1DU,DDU Cl $2,785,Dflfl Feedback: Correct. The formula to calculate cost of goods sold = beginning inventory + cost of goods manufactured - ending inventory. Restafing the formula for cost of goods manufactured = cost of goods sold - beginning inventory + ending inventory. Cost of goods sold 4. 2,5601DDI Begin hing inventory —?651t] I Ending inventory +540 DUI Cost of goods manufactured 4- 2.335130' 0 bjective Association - 4. Prepare the basic operating budgets for a manufacturing company. v Item 14 —Score: 1|]D‘ltEi {1 of1} The budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. {it production 9 O sales D master Cl flexible Feedback: Correct. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. Objective Association - 4. Prepare the basic operating budgets for a manufacturing corn panv. v Item 15 —Score: 188% [1 of1} Baylor lCompany began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $158,888, 8188,2118, and 8212.888. respectively, for April. May, and June. Depreciation, insurance, and property taxes represent 828.888 of the estimated monthly manufacturing costs. Insurance was paid on March 31. and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. The cash payments for manufacturing in the month ofJune are: U $212.?so (a masses {9 O $133.2oo O $21r.soo Feedback: Correct. Remaining May payments “8188.288 — 828, 881]}K K2588] 842. 35! June payments[[ [[821i'. 888— 828. 888) x T558] 141 EDI Cash payments for manufacturing In .June 81 31'85 D hjectiye Association Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and ?5% in the month following the sale. If sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April? CI $431500 0 $112,500 to causes 9 O Rococo Feedback: Correct. —- Collections from March sales {?5% it: $400,000] H- 300,00I collections from April {25% x $45o,ooo} m otal receipts from sales on account '1' 412151“ Objective Association - 5. Prepare financial budgets for a manufacturing company. As of January 1 of the current year, the Phyllis Company had accounts receivables of $50,000. The sales for January, Feb mary, and March were as follows: $120,000, $140,000 and $100,000. 20% of each month's sales are for cash. [if the remaining 00% {the credit sales], l00% are collected in the month of sale, with the remaining 40% collected in the following month. 1ll'tl'hat is the total cash collected {both from accounts receivable and for cash sales} in the month of March? ID $142,000 0 $140,000 (-3 $153,5oo Q) 0 513.com Feedback: Correct. MEITCh cash sales {$100,000 x 20%] $32,000 March account receivable collections {$100,000 : 00% x 00%} 110,000 Feanary accounts receivable collections {$140,000 x 00% x 44 000 40%} Cash collections for March $153,000 vltem13 — Score: 0% {I} of 1} The balance sheet budgets primarily reflect '3 financing and operafing acfivities. 9 D financing and invesfing acfivities. 9 ID selling and administrafive acfivities. O operafing and investing activities. Feedback: Incorrect. The income statement budgets reflect the operating activities of the company. Objective Association - 5. Prepare financial budgets fora manufactunng company. ...
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