CBA UOS Final Exam Question 1: Seleet either (CD or (F) for each of the followin

Question

CBA UOS Final Exam Question 1: Seleet either (CD or (F) for each of the following statements: (5 marks) 1 (T(F Budgeting includes only the financial aspects of the plan and not any 2 |! (F) | To create greater commitment to the budget, nonfin create the budget and then share it with lower-level managers. drivers they provide more accurate product costs than traditional systems should 3(FSimply because activity-based costing systems employ more 4 (T) (F) A key factor in controlling costs is focusing on the revenues a product or - 5-C ) 1 (F) Costing systemswith multiple co stpools are considered ABC systems 6T F) Measurement of cost behavior means understanding and quantifying how activities of an organization affect its levels of costs 7(D)F) During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the 8(F) When a company acquires all of the common stock of a subsidiary, the books of the subsidiary are no longer used margin equals total variable costs 9 (D (F) The break-even point is when enough units are sold that total contribution 10 | (T) | (F) | when an investing company owns less than 50 percent of another company, the companies must prepare consolidated financial statements Question 2: Choose the most suitable answer a, b.c, d for each of the statements: (10 marks) 1) The time coverage of a budget should be a. one year b. guided by the purpose of the budget. c. cover design through manufacture and sale of the product. d. shorter rather than longer. 2) The manufacturing overhead costs budget includes budgeted amounts for a. direct materials. b. direct manufacturing labor. c. indirect manufacturing labor d. all of the above. 3) Which of the following statements about activity-based costing is NOT true? a. Activity-based costing is useful for allocating marketing and distribution costs. b. Activity-based costing is more likely to result in major differences from traditional costing c. Activity-based costing seeks to distinguish batch-level, product-sustaining, and facility-sustaining d. Activity-based costing differs from traditional costing systems in that products are not cross- systems if the firm manufactures only one product rather than multiple products. costs, especially when they are not proportionate to one another. subsidized

Explanation / Answer

ANS 1                   

1              False, because budget derive from the non-financial aspect like how many units can be produced after that multiply with the planned rate to find out the projected sales value

2              False, because to create greater commitment, budget should made up with bottom-up approach as this tends to create budgets that are more achievable than are top-down budgets that are imposed on a company by senior management, with much less participation by employees

                3              True, because activity based cost allocation is the scientific and more rational method of cost allocation

                4              False, Key factor to control the cost is focusing on the cost of a product or services

As per chegg policy maximum four sub parts of a question can be answered, if you want answer of more sub parts pl. ask it separately on Chegg website

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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