Question :
67.A budget that can be easily adjusted to show budgeted : 1259692
67.A budget that can be easily adjusted to show budgeted revenues, costs, and cash flows at different levels of activity is known as:
A. A flexible budget.
B. A master budget.
C. A production budget.
D. A multi-level budget.
68.If the volume of output of a factory for the month of June is 50,000 units, while the budgeted output was 40,000 units:
A. Comparison of budgeted results and actual results will be misleading unless the company uses a flexible budget.
B. Actual fixed costs per unit may be expected to exceed budgeted levels.
C. Actual cost per unit will be higher than standard cost per unit.
D. Both total production costs and unit production costs should be approximately 25% above budgeted levels.
69.A flexible budget is one that:
A. Is revised monthly in the light of changing business conditions.
B. Is a compromise plan reflecting diverse views of various supervisors.
C. Contains estimated cost data for several different levels of activity.
D. Separates factory overhead between the variable and fixed portions.
70.A flexible budget:
A. Consists of estimates of costs and expenses for various possible levels of activity.
B. Is designed to be adjusted at frequent intervals for changes in the general price level.
C. Is better suited for use with a job cost system than a standard cost system.
D. Cannot be prepared when a standard cost system is in use.
71.Flexible budgeting may be viewed as combining the concepts of budgeting and:
A. Incremental analysis.
B. Product costing.
C. Cost-volume-profit analysis.
D. Financial statement analysis.
72.Flexible budgeting may be used for profit centers by applying cost-volume-profit relationships to the actual level of:
A. Units produced.
B. Resources consumed.
C. Costs incurred.
D. Sales achieved.
73.In a flexible budget for a profit center, which of the following items would not be expected to vary with the level of activity?
A. Revenue.
B. Fixed manufacturing overhead.
C. Direct materials cost.
D. Variable manufacturing overhead.
74.Armstrong, Inc. uses a flexible budget. Armstrong produced 16,000 units in May incurring direct materials cost of $20,480. Its master budget for the year projected direct materials cost of $362,500, at a production volume of 290,000 units. A flexible budget for May should reflect direct materials cost of:
A. $20,480.
B. $20,000.
C. $21,000.
D. $19,750.
75.Refer to the information above. Which of the following amounts should not be included in Skelton’s flexible budget at a 60,000-unit level?
A. Direct materials used, $43,200.
B. Direct labor, $54,000.
C. Variable overhead, $27,000.
D. Fixed manufacturing overhead, $70,200.
76.Refer to the information above. A performance report for Skelton’s first quarter of operations using a flexible budget approach would show:
A. Actual costs over budget by $1,300.
B. Actual costs over budget by $11,700.
C. Actual costs over budget by $15,150.
D. Total costs per the flexible budget of $194,400.
77.Refer to the information above. The cost-volume relationship used to prepare Skelton’s flexible budget for various production levels includes:
A. Fixed cost of $1.17 per unit.
B. Manufacturing overhead costs of $1.43 per unit.
C. Variable costs of $2.07 per unit.
D. Total cost of $3.05 per unit.
78.Refer to the information above. In a flexible budget for sales of 60,000 T-shirts, how much would Baskin budget for operating expenses?
A. $238,800.
B. $338,800.
C. $218,400.
D. $418,400.
79.Refer to the information above. What unit cost did Baskin use in budgeting the cost of goods sold for the year?
A. $6 per unit.
B. $10.25 per unit.
C. $17.50 per unit.
D. Some other amount.
80.Refer to the information above. Assume Baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. A performance report would indicate that net income was:
A. $2,660 over budget.
B. $43,120 under budget.
C. $90,000 under budget.
D. At the budgeted level.
