The first step of the budget process is: plan direct control feedback Static budget are often used by: production department. administrative departments. responsible centers. capital projects. A budget serves as a benchmark against which Actual results can be compared. Allocated results can be compared. Actual results become inconsequential. Allocated results become inconsequential. The following are characteristics of an effective budget, EXCEPT: Goals should be attainable. Evaluations should be made carefully with opportunities to explain any failures. They should be properly applied to avoid negative effects. Customers affected by a budget should be consulted when it is prepared. Which of the following is NOT a benefit of budgeting? It forces managers to look to the future. It plays an important role in communication within the organization. It serves an important role in motivating and rewarding employees. It encourages executives to build up organizational slack. The master budget for a merchandising firm integrates these budget EXCEPT for Sales budget Production budget Purchase budget Selling and administrative expenses budget. A favourable variance for direct materials indicates that More materials was used during production than planned for actual output. Less material was used during production than planned for actual output. A higher price than planned was paid for materials. A lower price than planned was paid for materials. If the actual cost is lower than the standard cost, the difference would be known as Adverse Favorable Negative Positive Setting of standard cost involves Analysis of the historical cost experience Engineering studies Input from operating personnel All of the above Variance constitutes the difference between The actual manufacturing cost and the standard cost at actual level of production. The standard cost and the actual manufacturing cost at the standard level of production. The standard level of production and the standard cost at the standard level of production. None of the above.

The first step of the budget process is: plan direct control feedback Static budget are often used by: production department. administrative departments. responsible centers. capital projects. A budget serves as a benchmark against which Actual results can be compared. Allocated results can be compared. Actual results become inconsequential. Allocated results become inconsequential. The following are characteristics of an effective budget, EXCEPT: Goals should be attainable. Evaluations should be made carefully with opportunities to explain any failures. They should be properly applied to avoid negative effects. Customers affected by a budget should be consulted when it is prepared. Which of the following is NOT a benefit of budgeting? It forces managers to look to the future. It plays an important role in communication within the organization. It serves an important role in motivating and rewarding employees. It encourages executives to build up organizational slack. The master budget for a merchandising firm integrates these budget EXCEPT for Sales budget Production budget Purchase budget Selling and administrative expenses budget. A favourable variance for direct materials indicates that More materials was used during production than planned for actual output. Less material was used during production than planned for actual output. A higher price than planned was paid for materials. A lower price than planned was paid for materials. If the actual cost is lower than the standard cost, the difference would be known as Adverse Favorable Negative Positive Setting of standard cost involves Analysis of the historical cost experience Engineering studies Input from operating personnel All of the above Variance constitutes the difference between The actual manufacturing cost and the standard cost at actual level of production. The standard cost and the actual manufacturing cost at the standard level of production. The standard level of production and the standard cost at the standard level of production. None of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The first step of the budget process is:
1. plan
2. direct
3. control
4. feedback
Static budget are often used by:
1. production department.
2. administrative departments.
3. responsible centers.
4. capital projects.
A budget serves as a benchmark against which
1. Actual results can be compared.
2. Allocated results can be compared.
3. Actual results become inconsequential.
4. Allocated results become inconsequential.
The following are characteristics of an effective budget, EXCEPT:
1. Goals should be attainable.
2. Evaluations should be made carefully with opportunities to explain any failures.
3. They should be properly applied to avoid negative effects.
4. Customers affected by a budget should be consulted when it is prepared.
Which of the following is NOT a benefit of budgeting?
1. It forces managers to look to the future.
2. It plays an important role in communication within the organization.
3. It serves an important role in motivating and rewarding employees.
4. It encourages executives to build up organizational slack.
The master budget for a merchandising firm integrates these budget EXCEPT for
1. Sales budget
2. Production budget
3. Purchase budget
4. Selling and administrative expenses budget.
A favourable variance for direct materials indicates that
1. More materials was used during production than planned for actual output.
2. Less material was used during production than planned for actual output.
3. A higher price than planned was paid for materials.
4. A lower price than planned was paid for materials.
If the actual cost is lower than the standard cost, the difference would be known as
1. Adverse
2. Favorable
3. Negative
4. Positive
Setting of standard cost involves
1. Analysis of the historical cost experience
2. Engineering studies
3. Input from operating personnel
4. All of the above
Variance constitutes the difference between
1. The actual manufacturing cost and the standard cost at actual level of production.
2. The standard cost and the actual manufacturing cost at the standard level of production.
3. The standard level of production and the standard cost at the standard level of production.
4. None of the above.

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