Which of the following do not serve as a source of data while preparing a cash b
ID: 2448695 • Letter: W
Question
Which of the following do not serve as a source of data while preparing a cash budget?
A sales budget
Collection records
A budgeted balance sheet
A budgeted income statement
Which of the following is true of standard costing?
It uses estimates that are based only on past costs.
It is the same as normal costing.
It cannot be used to manage cost centers.
It can be used in any type of business.
Which of the following is true of the cash budget?
It is prepared first in the master budget.
It is also called budgeted balance sheet.
It consists of cash receipts and cash payments.
It is the base for the preparation of the sales budget.
A direct labor rate variance would occur in which of the following?
When a production employee takes an unplanned break
When a production employee spends more time producing one product than was expected
When a low-paid production employee performs a task higher than his or her assigned level
When a production employee incurs overtime hours at the same hourly rate as regular pay
The linking of employee compensation to the achievement of measurable business targets is called
compensation goal.
performance-based compensation.
performance target.
performance linkage.
After management has set short-term goals, the budgeting process typically starts with
a clearly defined timetable of events.
input only from the accounting personnel.
the naming of an efficient coordinator or director.
a set of procedures or instructions.
The balanced scorecard is a framework that links the perspectives of an organization’s stakeholders with its
goals and vision, performance goals, strategic plan, and financial resources.
mission and overall plan, performance measures, departmental plans, and resources.
mission and vision, performance measures, strategic plans, and resources.
mission and vision, performance goals, overall plan, and resources.
For purposes of computing EVA, the minimum desired rate or return on an investment is known as
ROI.
cost of capital.
residual income.
profit margin.
Variable costing is utilized to evaluate the performance of
investment centers.
revenue centers.
cost centers.
profit centers.
Which of the following costs generally do not include standard unit costs?
Direct materials costs
Indirect materials costs
Board of directors’ salary
Depreciation on factory machine
A manager can improve EVA by
decreasing assets.
increasing tax expense.
increasing cost of capital.
decreasing current liabilities.
Which of the following budgets must managers prepare before they can prepare a direct materials purchases budget?
Labor budget
Overhead budget
Production budget
Cost of goods manufactured budget
Which of the following performance measures focus on short-term financial performance?
Economic value added
Residual income
ROI
All of these choices
The total fixed overhead variance is comprised of the
variable overhead efficiency and fixed variances.
fixed overhead budget and volume variances.
labor efficiency and rate variances.
fixed overhead spending and efficiency variances.
The formula used to compute budgeted total cost at any level of activity is presented in the
flexible budget.
performance report.
static budget.
cash flow forecast.
A responsibility center in which the relationship between resources and products or services produced is not well defined is known as a(n)
investment center.
profit center.
cost center.
discretionary cost center.
“The difference between actual hours worked and standard hours allowed for the good units produced, multiplied by the standard labor rate” is a description of the
direct labor rate variance.
direct labor efficiency variance.
total direct labor cost variance.
direct labor quantity variance.
Which of the following is a drawback of using standard costing system?
It can be expensive and time-consuming to implement.
It distorts actual cost information.
It is often inaccurate.
It is applicable only to manufacturing businesses, not service businesses.
A sales budget
Collection records
A budgeted balance sheet
A budgeted income statement
Explanation / Answer
Which of the following do not serve as a source of data while preparing a cash budget?
A sales budget
Collection records
ans
A budgeted balance sheet
A budgeted income statement
Which of the following is true of standard costing?
It uses estimates that are based only on past costs.
It is the same as normal costing.
It cannot be used to manage cost centers.
ans
It can be used in any type of business.
Which of the following is true of the cash budget?
It is prepared first in the master budget.
It is also called budgeted balance sheet.
ans
It consists of cash receipts and cash payments.
It is the base for the preparation of the sales budget.
A direct labor rate variance would occur in which of the following?
When a production employee takes an unplanned break
ans
When a production employee spends more time producing one product than was expected
When a low-paid production employee performs a task higher than his or her assigned level
When a production employee incurs overtime hours at the same hourly rate as regular pay
The linking of employee compensation to the achievement of measurable business targets is called
compensation goal.
Ans
performance-based compensation.
performance target.
performance linkage.
After management has set short-term goals, the budgeting process typically starts with
Ans
a clearly defined timetable of events.
input only from the accounting personnel.
the naming of an efficient coordinator or director.
a set of procedures or instructions.
The balanced scorecard is a framework that links the perspectives of an organization’s stakeholders with its
Ans
goals and vision, performance goals, strategic plan, and financial resources.
mission and overall plan, performance measures, departmental plans, and resources.
mission and vision, performance measures, strategic plans, and resources.
mission and vision, performance goals, overall plan, and resources.
For purposes of computing EVA, the minimum desired rate or return on an investment is known as
Ans
ROI.
cost of capital.
residual income.
profit margin.
Variable costing is utilized to evaluate the performance of
investment centers.
revenue centers.
Ans
cost centers.
profit centers.
Which of the following costs generally do not include standard unit costs?
Direct materials costs
Indirect materials costs
Ans
Board of directors’ salary
Depreciation on factory machine
A manager can improve EVA by
decreasing assets.
increasing tax expense.
increasing cost of capital.
Ans
decreasing current liabilities.
Which of the following budgets must managers prepare before they can prepare a direct materials purchases budget?
Labor budget
Overhead budget
Ans
Production budget
Cost of goods manufactured budget
Which of the following performance measures focus on short-term financial performance?
Economic value added
Residual income
ROI
Ans
All of these choices
The total fixed overhead variance is comprised of the
variable overhead efficiency and fixed variances.
Ans
fixed overhead budget and volume variances.
labor efficiency and rate variances.
fixed overhead spending and efficiency variances.
The formula used to compute budgeted total cost at any level of activity is presented in the
ans
flexible budget.
performance report.
static budget.
cash flow forecast.
A responsibility center in which the relationship between resources and products or services produced is not well defined is known as a(n)
investment center.
profit center.
cost center.
Ans
discretionary cost center.
“The difference between actual hours worked and standard hours allowed for the good units produced, multiplied by the standard labor rate” is a description of the
direct labor rate variance.
Ans
direct labor efficiency variance.
total direct labor cost variance.
direct labor quantity variance.
Which of the following is a drawback of using standard costing system?
Ans
It can be expensive and time-consuming to implement.
It distorts actual cost information.
It is often inaccurate.
It is applicable only to manufacturing businesses, not service businesses.
A sales budget
Collection records
ans
A budgeted balance sheet
A budgeted income statement
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