Question : 51.Which of the following contains at least one item that : 1302850

 

 

51.Which of the following contains at least one item that is not a common method companies use to estimate sales?

A.Economic models, and estimates from a company’s own sales force

B.Trends in a company’s own sales data, and estimates from a company’s own sales force

C.Estimates from a company’s own sales force, and expected production levels

D.Economic models, and trends in a company’s own sales data

 

52.Which of the following is not a method that can reasonably be used to forecast sales?

A.Trends in the company’s sales data

B.Production capacity

C.Estimates from the company’s salespersons

D.Mathematical models adjusted by an experienced manager using professional judgment

 

53.Which of the following assumptions is made while preparing a sales budget?

A.The number of units to be sold and selling price per unit

B.The cash to be received from units sold

C.The contribution margin per unit and the number of units to be sold

D.The number of units the manufacturing facility is able to produce

 

54.Why is setting the sales budget very important?

A.The rest of the master budget is driven by the sales budget.

B.It is based on the production targets set by the production department.

C.It establishes the actual profits that will be earned by a company.

D.None of the answer choices are correct.

 

55.Which of the following is not used in deciding how many units to produce in a period?

A.The desired number of units in ending finished goods inventory

B.The expected sales in units

C.The number of units in beginning finished goods inventory

D.The number of units of raw material needed for production

 

56.Concerning relationship between beginning finished goods inventory, ending finished goods inventory, production, and sales, which of the following is true?

A.Production = Beginning Inventory + Sales – Ending Inventory

B.Production = Sales + Ending Inventory – Beginning Inventory

C.Production = Beginning Inventory + Ending Inventory – Sales

D.Production = Beginning Inventory – Ending Inventory + Sales

 

57.Ace Ladders has fewer units in beginning finished goods inventory than in ending finished goods inventory. The number of units sold is

A.less than the number of units produced.

B.greater than the number of units produced.

C.less than the number of units in beginning finished goods inventory.

D.greater than the number of units in ending finished goods inventory.

 

58.While preparing the production budget, the desired ending finished goods inventory for the first period is

A.the same as the beginning inventory for the second period.

B.often expressed as a percentage of the first period’s sales.

C.generally more than the beginning finished goods inventory for the first period.

D.always zero.

 

59.Which of the following items affect the amount of direct material that must be purchased during a period?

I.The amount of raw material in beginning inventory

II.The amount of raw material in ending inventory

A.Only I

B.Only II

C.Both I and II

D.Neither I nor II

 

60.A significant difference between the direct material purchases budget and the direct labor budget is that the direct material purchases budget

A.is based on units sold, while the direct labor budget is based on units produced.

B.considers beginning and ending inventory amounts, which are not part of the direct labor budget.

C.is constructed for each quarter, while the direct labor budget is constructed for each pay period.

D.is constructed from the top down, while the direct labor budget uses a bottom-up approach.

 

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