ACCT 2302(Ch 6 - Chapter 6 Review 1 A formal written statement of management's plans for the future expressed in financial terms is a budget 2 The

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Chapter 6 Review 1. A formal written statement of management's plans for the future, expressed in financial terms, is a: budget 2. The budget process involves doing all the following except: dismissing all managers who fail to achieve operational goals specified in the budget 3. The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a: responsibility center 4. The benefits of comparing actual performance of the operations against planned goals include all of the following except: determining how managers are performing against prior years' actual operating results 5. Budgeting supports the planning process by encouraging all of the following activities except: directing and coordinating operations during the period 6. When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing: goal conflict 7. The budgeting process does not involve which of the following activities: Increase of sales by increasing marketing efforts. 8. Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem? Allowing employees the opportunity to be a part of the budget process. 9. Which of the following budgets allow for adjustments in activity levels? Flexible Budget 10. The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as: zero-based budgeting 11. A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed: continuous budgeting 12. Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 units of production, a flexible budget would show: variable costs of $52,800 and $23,000 of fixed costs 13. Bob and Sons' static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show: direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000 14. If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 200 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is: 7,800 15. Which of the following budgets provides the starting point for the preparation of the direct labor cost budget? Production budget
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Chapter 6 Review 16. Production estimates for July are as follows:
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This note was uploaded on 10/01/2011 for the course ACCT 2302 taught by Professor Dr. during the Spring '11 term at University of Houston-Victoria.

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ACCT 2302(Ch 6 - Chapter 6 Review 1 A formal written statement of management's plans for the future expressed in financial terms is a budget 2 The

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