February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000
ID: 2361912 • Letter: F
Question
February March April
Cash Sales $160,000 $150,000 $120,000
Credit Sales 300,000 400,000 280,000
Total Sales$460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 80% of the next month's projected total sales.All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
Brenton's budgeted total cash payments in March for inventory purchases are
1.(TCO 1) Asignificant limitation of activity-based costing is the(Points : 5) attentiongiven to indirect cost allocation.manynecessary calculations.
operations staff's attitude toward theaccounting staff.
use itmakes of technology.
Explanation / Answer
Asignificant limitation of activity-based costing is the(Points :
attentiongiven to indirect cost allocation.
manynecessary calculations.-correct answr
operations staff's attitude toward theaccounting staff.
use itmakes of technology
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Overhead costs have been increasing due to all of the followingexcept(Points : 5) productproliferation.tracing more costs as direct costs withthe help of technology.
morecomplexity in distribution processes.
increasedautomation. 2)Budgeting provides all of the following except(Points : 5) a means to communicate theorganization's short-term goals to its members.
support for the management functions ofplanning and coordination.
ameans to anticipate problems.
anethical framework for decision making.
Which cost estimation method uses a formal mathematical methodto develop cost functions based on past data?(Points : 5) Quantitativeanalysis method
Industrialengineering method
Accountanalysis method
Conferencemethod
)Sunk costs(Points : 5) arerelevant to all decisions.
havefuture implications.
arefuture costs.
arepast costs.
The theoryof constraints is used for cost analysis when(Points : 5) a manufacturing company producesmultiple products and uses multiplemanufacturing facilities and/or machines.
using along-term time horizon.
operatingcosts are assumed fixed.
Allof the above
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