Chapter 10 Practice Exam

Chapter 10 Practice Exam - Garrison 13e Practice Exam...

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Garrison 13e Practice Exam – Chapter 10 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. What are the major weaknesses of static budgets? 2. What are the characteristics of a planning budget? 3. What are the characteristics of a flexible budget?
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4. Ricky’s Fiesta Diner is a family-owned restaurant that serves pizza and Italian dishes. Data concerning the restaurant’s monthly revenues and costs appear below (q refers to the number of meals served): Formula Revenue $12q Cost of ingredients $3.50q Wages $7,500 Utilities $600 + $0.20q Rent $2,500 Part (a) Prepare the diner’s planning budget for January assuming that 1,500 meals are served. Part (b) Assume that 1,600 meals were served in January. Prepare a flexible budget for this level of activity. Part (c) Actual results for January appear below. Prepare a flexible budget performance report
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Chapter 10 Practice Exam - Garrison 13e Practice Exam...

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