1- The first step in preparing a flexible budget is to a. identify the fixed and

Question

1- The first step in preparing a flexible budget is to

a. identify the fixed and variable cost components.

b. prepare the budget for each activity level by multiplying each variable cost per unit by the activity level and then adding the fixed costs.

c. identify the relevant activity levels.

d. None of these choices are correct.

2- All of the following are integrated into the cost of goods sold budget except the __________ budget.

a. direct labor cost

b. direct materials purchases

c. factory overhead cost

d. selling and administrative expenses

3- The __________ is often used as the starting point for the selling and administrative expenses budget.

a. sales budget

b. factory overhead cost budget

c. payroll register

d. cost of goods sold budget

Explanation / Answer

Q1. Answer is C. Identify the relevant activity levels. Q2. Answer is d. Selling and admin expense Q3. Answer is a. Sales budget

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.