Question

0. A company developed a standard cost for overhead. Which of the following involves standard development procedures that are similar to developing overhead standard costs?

a. predetermined overhead rates

b. Budgeted direct labor costs

c. standard costs for materials

d. total number of units to be produced

11. Which of the following may be cause an unfavorable material variance?

1. more material was used than planned

2. A company paid a higher price for materials than expected

3. More materials were used than purchased

a. 1 an 3

b. 1 and 2

c. 2 and 3

d. 1,2, and 3

21. Marks Company produces staplers. It sales are projected to be 26,000 in June, 28,000 in July, and 30,000 in August. The company plans to have 15% of the next month's sales in inventory at the end of each month. How many staplers must Marks produce in July?

a. 28,600

b. 28,300

c. 32,500

d. 28,000

22. Which of the following is least likely to produce a need for temporary financing to bridge a cash shortfall?

a. Allowing customers to purchase on credit

b. Paying insurance policies in advance of the period insured

c. building up inventory in anticipation of increased sales in the months ahead

d. purchasing materials on a just-in-time inventory basis

33. A method of budget preparation that requires all budgeted amounts to be justified, even if the amounts were supported in prior periods, is called

a. justified budgeting

b. flexible budgeting

c. zero-based budgeting

d. variance budgeting

34. which of the following is correct concerning a budget?

a. it is prepared by the budget committee

b. it identifies the causes of significant deviations from expected performance

c. it is a formal document that quantifies a company's plans for achieving its goals

d. all of the answer choices are correct

37. why is setting the sales budget very important?

a. it is based on the production targets set by the production department

b. it establishes the actual profits that will be earned by a company

c. the rest of the master budget is driven by the sales budget

d. non of the answer choices are correct

39. a budget is useful in the planning process because it

a. forces managers to think about goals and objectives and means of achieving them

b. creates budget slack

c. identifies budget padding

d. determines who is to blame for poor operations

43. Green company's sales are 20% cash and 80% credit. Of the credit sales, 60% are collected in the month of sale and 30% in the month following the sale. The balance is collected during the following month. Budgeted sales data is as follows:

June $300,000

July $250,000

August $280,000

September $310,000

How much is total Accounts receivable at the end of August?

a. 109,600

b. 89,600

c. 224,400

d. 137,000

Answer 1

0)

Answer- c) standarad costs for material

11)

Answer- b) 1 and 2

21)

Answer- b) 28300

Production of Staplers in July= Sales+Closing Stock-Opening Stock

=28000+(28000*15%)-(26000*15%)

=28000+4200-3900

=28300

22)

Answer- d) purchasing materials on a just-in-time inventory basis

33)

Answer- c) Zero-based budgeting

34)

Answer- d) All the answer choices are correct

37)

Answer- d) none of the answer choices are correct

39)

Answer- a) forces managers to think about goals and objectives and means of achieving them

43)

Answer- a) $1,09,600

Total Accounts Receivables at the end of August= Receivable of July+ Receivable of August

=((2,50,000*80%)*10%)+((2,80,000*80%)*40%)

=$ 1,09,600