ECON
Management Accounting Q's practice

Management Accounting Q's practice - Managerial Accounting...

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Managerial Accounting Assignment 3 32 Questions 1 If the volume of output of a factory for the month of June is 50,000 units, while the budgeted output was 40,000 units: comparison of budgeted results and actual results will be misleading unless the company uses a flexible budget. actual fixed costs per unit may be expected to exceed budgeted levels. actual cost per unit will be higher than standard cost per unit. both total production costs and unit production costs should be approximately 25% above budgeted levels. 2 Which element of a master budget would normally be prepared first? a production budget. a cash budget. a budget of operating expenses. a sales forecast. 5 Tap's Department Store prepares monthly income statements by sales departments. These income statements are organized to show contribution margin, performance margin, and responsibility margin for each sales department, as well as operating income for the store as a whole. Refer to the information above. Depreciation of the fixtures and equipment used exclusively in a particular sales department should be classified as a: common fixed cost. variable cost. controllable fixed cost. committed fixed cost. 6 As the volume of output decreases: fixed costs per unit will increase. fixed costs per unit will decrease. fixed costs per unit will not change. fixed costs in total will decrease. 7
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Monroe Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales = $1,200,000 Cost of Goods Sold = 720,000 Gross Profit = 480,000 Operating Expenses ($100,000 is fixed) = 316,000 Operating Income = 164,000 Income Taxes (30% of operating income) = 49,200 Net Income = $ 114,800 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. Refer to the above information. What unit cost did Monroe use in budgeting the cost of goods sold for the year? $4. $9. $15. Some other amount. 8 The human resources department of a large company would be considered: a cost center. a profit center. an investment center. a revenue center. 10 Many companies view performance margin as a more useful tool than responsibility margin for evaluating segment managers. This is because: managers have no control over traceable fixed costs. performance margin is not affected by the size of the department. performance margin indicates the change in operating income that would result from closing the department.
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performance margin includes only those revenue and costs under the manager's direct control. 12 Which of the following costs would be classified as a period cost? Direct labor. Direct materials. Factory overhead. Selling expenses. 14 Tap's Department Store prepares monthly income statements by sales departments. These income statements are organized to show contribution margin, performance margin, and responsibility margin for each sales department, as well as operating income for the store as a whole.
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  • Spring '14
  • ismailov
  • Revenue, Generally Accepted Accounting Principles, sales department

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