Question

10) Which of the following costs are most likely to be classified as a variable cost? A) Insurance B) Straight-line depreciation C) Direct materials D) Factory rent The term describing a firm's normal range of operating activities is called the A) Relevant range of operations B) Break-even level of operations C) Margin of safety of operations D) None of the above 11) 12) A budget can be an effective means of communicating management's plans to the employees of 1buALSS a business TRUE FALSE ts within the master budget must be prepared in a definite sequence as dictated by 13) The budge US GAAP TRUE FALSE Which of the following is NOT true about Budgets? A) Budgets start with the Sales Budget B) Process of evaluating performance can be improved by C) The Capital expenditures budget is prepared before the Operating budget D) The Master Budget is ordinarily separated into monthly and quarterly budgets 14) using budgets 15) A rolling or continuous budget is the practice of revising the entire set of budgets as time progresses. TRUE FALSE Which of the following budgets is NOT part of the Financial Budget? A) Balance Sheet Budget B) Schedule of Cost of Goods Sold Budget C) Cash Budget D) Statement of Cash Flows Budget 16) The Merchandise Purchases Budget depends upon information provided by the Sales Budget. 17) TRUE FALSE 18) The Production Budget should be prepared before the Direct Materials and Direct Labor Budgets. TRUE FALSE 19) Benefits of Budgeting include all of the following EXCEPT: A) Promotes analysis of results B) Creates an early warning system C) Facilitates coordination of activities within the company D) Motivate personnel with challenging, frustrating, and unrealistic goals

Answer 1

10. Correct answer is C: Direct Materials

Explanation:

Variable cost are those cost which vary with the level of output. Direct materials are directly related to the production of the product. Hence, it is varaible cost.

11. A. Relevant range of operation

Explanation:

A range of operation is used to describe the normal range of activities.