Question :
51) The budgeting process generally concludes with the preparation of : 1196259
51) The budgeting process generally concludes with the preparation of the 51) ______ A) research and development budget. B) production budget. C) cash budget. D) selling expense budget. E) budgeted financial statements.
52) Contempo Futon manufactures futons. The estimated number of sales for the last quarter of 2006 is as follows:
Month
Sales
October
20,000
November
25,000
December
30,000
Beginning finished goods should be equal to 30 percent of each month’s sales during these months and 10 percent of each month’s sales in other months. January 2007 sales are anticipated to be 15,000 futons. The cost to produce a futon is $125.
What will be the cost of goods manufactured for December? 52) ______ A) $3,750,000 B) $2,812,500 C) $3,937,500 D) $2,625,000 E) $3,125,000
53) Fair Score Company manufactures scoreboards for athletic events. It expects to sell 20,000 scoreboards in 2007. The company has enough beginning inventory of direct materials to produce 8,000 units. Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead. Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units. The scoreboards sell for $800. There is no ending work-in-process inventory. Direct materials costs for each scoreboard total $200 while direct labour is $80. Manufacturing overhead is $60 per scoreboard.
What will be the amount of cost of goods sold? 53) ______ A) $5,975,000 B) $6,460,000 C) $6,120,000 D) $6,800,000 E) $8,160,000
54) Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000.
The cost of goods sold for next month is expected to be 54) ______ A) $360,000 B) $225,000 C) $244,000 D) $264,000 E) $240,000
55) Computer-based financial planning models, designed for sensitivity analysis, are mathematical representations of which of the following? 55) ______ A) the current organizational structure B) the strategic plan C) the relationships across operating activities, financial activities and financial statements D) activity based budgeting E) the lines of responsibility in the value chain
56) Kaizen budgeting, adapted from the Japanese, provides that 56) ______ A) activity costs are budgeted based on current practices, methods, and costs. B) a rolling budget is employed to keep a handle on management. C) target pricing is key to budget preparation. D) continuous budgeting methods are employed. E) continuous improvements are incorporated into the budget.
57) The objective of activity-based budgeting is 57) ______ A) to classify costs by functional area and assign them to related activities. B) to compute the cost of performing activities. C) to refine the budgeting process by assigning indirect costs into activity cost pools. D) to allow multiple activities to be used as cost drivers rather than just one item such as direct labour hours. E) to classify costs as to whether they are value added or non-value added.
58) Activity-based budgeting includes all the following steps EXCEPT 58) ______ A) computing the cost of performing activities. B) determining the budgetary slack for the activity being measured. C) describing the budget as costs of activities rather than costs of functions. D) determining demand for activities from sales and production targets. E) determining the budgeted costs of performing each unit of activity at each activity area..
59) The major types of responsibility centres are 59) ______ A) revenue, profit, income, and cost. B) profit, sales, and direct cost. C) revenue, profit, cost, and investment. D) profit, non-profit, and governmental. E) profit, indirect cost, and investment.
60) The reason for tracing a cost in responsibility accounting is to determine which of the following? 60) ______ A) who has the best knowledge about why the costs arose B) what activity caused the costs to be incurred C) whether it is production or administrative D) whether it is fixed or variable E) either who has the best knowledge about why the costs arose or, what activity caused the costs to be incurred
