1. Which of the following forms the base of all operating budgets? a. dirct mate
ID: 2380264 • Letter: 1
Question
1. Which of the following forms the base of all operating budgets?
a. dirct materials purchases in units
b. production budget (units)
c. cpaital expenditures budget
d. unit sales forecast
2. After management has set short-term goals, the budgeting process typically starts with
a. a clearly defined timetable of events
b. input only from the accounting personnel
c. the naming of an efficient coordinator or director
d. a set of procedures or instructions
3. Fora a small coffee cafe, which of the following is a nonvalue-adding activity?
a. importing coffee beans
b. purchasing ingredients
c. accounitng for materials and conversion costs
d. operating the drive-through window
4. which is a batch level activity?
a. testing products
b. inspection
c. implementation of engineering changes
d. maintenance of the building
5. In a just in time environment using backflush costing, the entry to record the use of materials for the month's production is debit ___________ and credit______________
a. work in process inventory; materials inventory
b. cost of goods sold; finished goods inventory
c. conversion costs; accounts payable
d. no entry
6. which of the folloing is reduced by just in time operations?
a. inspection and moving time
b. only storage time
c. moving time and processing time
d. inspection time and processing time
7. identify the following activities for an automobile manufacturer as
a. Reseach and development
b. Moving product
Value adding_____________
Non value adding__________
8. which is the following is an advantage to budgeting?
a.budgets help managers by eliminating risk, as they show actual values of expected activities
b. budgets form a part of the financial statements of a company
c. budgets help managers by identifying potential contraints
d. budges contain only dollar values and this helps in analyzing actual performance.
Explanation / Answer
1. (d) unit sales forecast
2. (a) clearly defined timetable of events
3. (c) accounting for materials and conversion costs
4. (a) testing products
5. (b) debit cost of goods sold, credit finished goods inventory
6. (b) only storage time
7. a. Reseach and development: Value adding
b. Moving product: Non-Value adding
8. d. budges contain only dollar values and this helps in analyzing actual performance.
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