Question : 61.Which of the following likely to increase the amount budgeted : 1302851

61.Which of the following is likely to increase the amount budgeted for depreciation in the manufacturing overhead budget?

A.Sale of production equipment at a loss

B.Increased variable costs related to estimated increases in sales

C.Planned acquisitions of new equipment

D.A decrease in the number of units to be produced

62.Which of the following is a reason the amount of cash paid out for manufacturing overhead each period does not equal the total overhead incurred?

A.Depreciation is an overhead expense that does not require the use of cash.

B.Overhead expenses are only estimates, and they do not require cash.

C.Cash is only paid out for variable manufacturing overhead expenses.

D.The amount of cash paid out is adjusted for the number of units sold.

63.A significant difference between the direct material purchases budget and the production budget is that the production budget considers

A.units to be produced, while the direct material purchases budget is based on units to be sold.

B.beginning and ending finished goods inventory amounts, which are not part of a direct material purchases budget.

C.finished goods inventory levels, while the material purchases budget considers raw material inventory levels.

D.the capacity of the factory, while the direct material purchases budget does not.

64.Which of the following is not required to calculate cost of goods sold in the budgeted income statement?

A.Number of units to be sold

B.Direct material costs to be used and direct labor costs to be incurred

C.Manufacturing overhead costs incurred

D.Direct material purchases expected during the period

65.If budgeted net income is projected to be less than the company’s goal, the company should try to

A.increase revenues and decrease expenses.

B.incur more fixed costs and less variable costs.

C.increase the collection of cash receipts.

D.finance operations with a loan.

66.Which of the following statements is true concerning the capital acquisitions budget?

A.It consists of a plan to acquire long-lived assets.

B.It is constructed directly from the values in the sales budget.

C.It is the same as the capital budgeting process.

D.It is dependent upon plant capacity.

67.Which of the following does not appear on the cash budget?

A.Beginning cash balance

B.Purchase of long-lived assets

C.Cost of goods sold

D.Collection of credit sales

68.Which of the following transactions will affect the cash budget for a particular month in which each transaction occurs?

A.Sale of a product when payment will be received in 60 days

B.Payment for direct labor

C.Amortization of prepaid insurance

D.Depreciation of a piece of equipment that was purchased last year

69.A cash budget fails to alert the management for:

A.low projected cash balance.

B.low profit levels.

C.availability of excess cash for investment purposes.

D.availability of sufficient cash for loan repayments.

70.Which of the following is least likely to produce a need for temporary financing to bridge a cash shortfall?

A.Building up inventory in anticipation of increased sales in the months ahead

B.Allowing customers to purchase on credit

C.Paying insurance policies in advance of the period insured

D.Purchasing materials on a just-in-time inventory basis