Strategic planning ________.
ANSWER
INCORRECT
·
THE CORRECT ANSWER
entails
the planning and establishment of long-term goals which extend years into the
future
·
YOU WERE SURE AND INCORRECT
involves
multiple levels of management including lower-level managers who provide
real-world knowledge for the establishment of goals
·
refers
to a budget which provides a means to absorb the costs of overstating
budgeted expenses or understating budgeted revenues
·
involves
a budget which starts at a zero balance and all funds a manager may use must be
justified in the budget
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
Strategic planning entails the planning and establishment of long-term goals which
extend years into the future.
Slack is flexibility in a
budget to provide a means to absorb costs of overbudgeting expenses or
underbudgeting revenues.
Participative budgeting
involves multiple levels of management including lower-level managers who
provide real-world knowledge to the establishment of goals.
Zero-based budgeting refers to a budget which starts at a zero
balance and all funds a manager may use must be justified in the budget.
Which
of the following answers describes the benefits of the financial budget?
ANSWER
INCORRECT
·
A manager who uses this budget
can run the day-to-day operations at the workplace.
·
THE CORRECT ANSWER
A manager who uses this budget
can compile the capital expenditure budget, the cash budget, and the budgeted
balance sheet.
·
YOU WERE SURE AND INCORRECT
The manager is consistent and
always revises and updates this budget to ensure effective budgeting on an
annual basis.
·
A manager who uses this budget
can develop plans for the organization in its entirety.
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
A manager who uses this budget can compile the
capital expenditure budget, the cash budget, and the budgeted balance sheet describes
the benefits of the financial budget.
The master budget is the comprehensive
planning document for the entire organization.
The operating budget consists of budgets to
run the daily operations at the workplace.
The
rolling budget is consistently revised or updated so the manager may ensure
effective business operations for the year.
A
merchandising company uses a master budget which includes a ________.
ANSWER
INCORRECT
·
THE CORRECT ANSWER
cost of goods sold
·
YOU WERE SURE AND INCORRECT
production budget
·
direct materials budget
·
direct labor budget
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
A
merchandising company uses a master budget which includes a cost
of goods sold budget. Merchandising firms do NOT use production budgets, direct
materials budgets, or direct labor budgets. The other answers are not correct.
Safety
stock is ________.
ANSWER
INCORRECT
·
only used when there is an
overage of current inventory
·
YOU WERE SURE AND INCORRECT
stock purchased by the manager
to ensure return on profits
·
unplanned and should never be
considered after an inventory shortage occurs
·
THE CORRECT ANSWER
inventory kept on hand to account
for increases in consumer demand
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
Safety
stock is inventory kept on hand to account for increases in
consumer demand. The other answers are not correct.
Which
of the following is a benefit of budgeting which helps a manager motivate
employees and evaluate performance?
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
Planning
·
Coordination and communication
·
THE CORRECT ANSWER
Benchmarking
·
Rolling budget
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
Benchmarking may
help a manager motivate employees and evaluate performance. Benchmarking helps
a manager target performance.
Planning helps managers to direct the daily
business operations.
Coordination and communication helps the
manager coordinate activities with other individuals and groups at the
workplace.
The
rolling budget ensures the effective annual business operations for a 12-year
period.
The
Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in
November for $6 each.
What
is the total sales revenue for the sales budget during October and November?
ANSWER
INCORRECT
·
$3.60 October; $4.80 November
·
YOU WERE SURE AND INCORRECT
$3,600 October; $4,800 November
·
$360 October; $480 November
·
THE CORRECT ANSWER
$36,000 October; $48,000
November
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
The total sales revenue for the sales budget
during October and November is $36,000 October; $48,000
November. The other answers are not correct.
October: 6,000 × $6 = $36,000
November:
8,000 × $6 = $48,000.
The
starting point for creating the budget is ________.
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
forecasted results
·
THE CORRECT ANSWER
actual or prior year budgeted
data
·
projected results
·
current year figures
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
The
starting point for creating the budget is actual
or prior year budgeted data. The other answer choices are not
correct.
The
managerial accountant at Hill’s Development Services expects to collect 30% of
its credit sales in the month after the sale and 40% two months after the sale.
Assume credit sales in December were $100,000 and November sales were $90,000.
|
November
credit sales
|
$90,000
|
|
December
credit sales
|
$100,000
|
What
is the anticipated cash collection of credit sales for January?
ANSWER
INCORRECT
·
$6,000
·
$606
·
YOU WERE SURE AND INCORRECT
$660
·
THE CORRECT ANSWER
$66,000
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
The total cash the managerial accountant
expects to collect in January is $66,000. The
other answers are not correct.
December sales 30% × $100,000 = $30,000
November sales 40% × $90,000 = $36,000
$30,000
+ $36,000 = $66,000
Which
of the following is a benefit of budgeting which helps a manager motivate
employees and evaluate performance?
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
Rolling budget
·
Planning
·
Coordination and communication
·
THE CORRECT ANSWER
Benchmarking
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
Benchmarking may
help a manager motivate employees and evaluate performance. Benchmarking helps
a manager target performance.
Planning helps managers to direct the daily
business operations.
Coordination and communication helps the
manager coordinate activities with other individuals and groups at the
workplace.
The
rolling budget ensures the effective annual business operations for a 12-year
period.
Which
of the following answers describes the benefits of the financial budget?
ANSWER
INCORRECT
·
A manager who uses this budget
can develop plans for the organization in its entirety.
·
The manager is consistent and
always revises and updates this budget to ensure effective budgeting on an
annual basis.
·
YOU WERE SURE AND INCORRECT
A manager who uses this budget
can run the day-to-day operations at the workplace.
·
THE CORRECT ANSWER
A manager who uses this budget
can compile the capital expenditure budget, the cash budget, and the budgeted
balance sheet.
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
A manager who uses this budget can compile the
capital expenditure budget, the cash budget, and the budgeted balance sheet describes
the benefits of the financial budget.
The master budget is the comprehensive
planning document for the entire organization.
The operating budget consists of budgets to
run the daily operations at the workplace.
The
rolling budget is consistently revised or updated so the manager may ensure
effective business operations for the year.
Monumental
Industries manufactures desks. Each desk requires .30 direct labor hours to
produce. Monumental has a direct labor rate of $12 per direct labor hour. The
managerial accountant reported that the production budget indicates that the
production schedule consists of 800 desks in September and 900 desks in
October.
What
is the total direct labor budgeted cost together for September and October?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
$6,120
·
YOU WERE SURE AND INCORRECT
$1,260
·
$316
·
$612
·
I DON'T KNOW YET
WHAT
YOU NEED TO KNOW
The total direct labor budgeted cost together
for September and October is $6,120. The
other answers are not correct.
800 + 900 = 1,700
1,700 × .3 = 510 hours
510
hours × $12 = $6,120
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