ACCT202- Teng Final Exam Fall 2017 18. A responsibility report for a profit cent

Question

ACCT202- Teng Final Exam Fall 2017 18. A responsibility report for a profit center will A) not show controllable fixed costs. B) not show indirect fixed costs. C) show noncontrollable fixed costs. D) not show cumulative year-to-date results. 19. Using standard costs A) can make management planning more difficult B) promotes greater economy C) does not help in setting prices. D) weakens management control. 20. For June, Gold Corp. estimated sales revenue at S600.000. It pays sales commissions that are 4% of sales. The sales manager's salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. How much are budgeted selling expenses for the month of July if sales are expected to be $540,000? A) $42,000 B) S327,000 C) $27,000 D) $330,000 When budgeted and actual results are not the same amount, there is a budget A) error B) difference C) anomaly D) by-product 21. 22. If a project's profitability index is greater than 1, then the A) project should always be accepted. B) project's net present value is negative. C) project's internal rate of return is less than the discount rate. D) project should be accepted if funds are available. 23. If budgets are to be effective, there must be A) a history of successful operations. B) independent verification of budget goals C) an organizational structure with clearly defined lines of authority and responsibility. D) excess plant capacity Page 5

Explanation / Answer

18 B) not show indirect fixed costs. 19 B) Promotes greater economy. 20 Budgeted selling expense: Sales commission (540000*4%) 21600 Sales manager's salary 285000 Shipping expenses (540000*1%) 5400 Miscellaneous selling expenses 15000 Total Budgeted selling expense 327000 Answer is B) $327000 21 B) Difference 22 D) Project should be accepted if funds are available 23 C) an organisational structure with clearly defined lines of authority and responsibility.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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