Accounting Final (Kahoot)

the important end-product of the operating budget is the a. budgeted income statement b. production budget c. cash budget d. budgeted balance sheet

a. budgeted income statement

which is the last step in developing the master budget? a. preparing the budgeted balance sheet b. preparing the budgeted income statement c. preparing the cost of goods manufactured budget d. preparing the cash budget

a. preparing the budgeted balance sheet

a total materials variance is analyzed in terms of a. price and quantity variances b. quantity and quality variances c. buy and sell variances d. tight and loose variances

a. price and quantity variances

a standard cost is a. a cost which is paid for a group of similar products b. a predetermined cost c. the average cost in an industry d. the historical cost of producing a product last year

b. a predetermined cost

which of the following does not appear as a separate section on the cash budget? a. cash receipts b. capital expenditures c. cash disbursements d. financing

b. capital expenditures

which one of the following items would never appear on a cash budget? a. office salaries expense b. depreciation expense c. interest expense d. travel expense

b. depreciation expense

beginning cash balance plus total receipts a. equals ending cash balance b. equals total available cash c. must equal total disbursements d. is the excess of available cash over disbursements

b. equals total available cash

a static budget is appropriate for a. variable overhead costs b. fixed overhead costs c. direct materials costs d. none of these answers are correct

b. fixed overhead costs

the most rigorous of all standards is the a. normal standard b. ideal standard c. realistic standard d. conceivable standard

b. ideal standard

process of evaluating financial data that change under alternative courses of action a. double entry analysis b. incremental analysis c. contribution margin analysis d. cost-benefit analysis

b. incremental analysis

a master budget consists of a. an interrelated long-term plan and operating budgets b. interrelated financial budgets and operating budgets c. financial budgets and a long-term plan d. all the accounting journals and ledgers used by a company

b. interrelated financial budgets and operating budgets

which one of the following sections would not appear on a cash budget? a. cash receipts b. investing c. financing d. cash disbursements

b. investing

a standard differs from a budget because a standard a. is a predetermined cost b. is a unit amount c. contributes to management planning and control d. none of these; a standard does not differ from a budget

b. is a unit amount

which of the following is not a financial budget? a. capital expenditure budget b. manufacturing overhead budget c. cash budget d. budgeted balance sheet

b. manufacturing overhead budget

an opportunity cost a. should be initially recorded as an asset b. potential benefit that may be obtained c. is the cost of a new product proposal d. is classified as manufacturing overhead

b. potential benefit that may be obtained

ideal standards a. are rigorous but attainable b. reflect optimal performance in perfect operating conditions c. are the standards generally used in a master budget d. will always motivate employees to achieve the maximum output

b. reflect optimal performance in perfect operating conditions

book value of old equipment is considered to be a a. relevant cost b. sunk cost c. semi-relevant cost d. cost that can be changed by a present of future decision

b. sunk cost

opportunity cost is usually a. a standard cost b. a sunk cost c. a potential benefit d. included as part of cost of goods sold

c. a potential benefit

in incremental analysis, a. costs are not relevant if they change between alternatives b. only fixed costs are relevant c. all costs are relevant if they change between alternatives d. only variable costs are relevant

c. all costs are relevant if they change between alternatives

the financial budgets include the a. cash budget and the selling and admin expense budget b. budgeted balance sheet and the budgeted income statement c. cash budget and the budgeted balance sheet d. cash budget and the production budget

c. cash budget and the budgeted balance sheet

the cash budget reflects a. all revenues and all expenses for a period b. all the items that appear on a budgeted income statement c. expected cash receipts and cash disbursements d. all the items that appear on a budgeted balance sheet

c. expected cash receipts and cash disbursements

a budget a. is a substitute for management b. can operate or enforce itself c. is an aid to management d. is the responsibility of the accounting department

c. is an aid to management

the financing section of a cash budget is needed if the ending cash balance is less than a. the prior years b. the amount needed to avoid a service charge at the bank c. management's minimum required balance d. the industry average

c. management's minimum required balance

the two levels that standards may be set at are a. normal and fully efficient b. ideal and less efficient c. normal and ideal d. fully efficient and fully effective

c. normal and ideal

total direct labor hours required in preparing a direct labor budget are calculated using a. sales forecast b. direct materials budget c. production budget d. sales budget

c. production budget

the starting point in preparing a master budget is the preparation of the a. production budget b. purchasing budget c. sales budget d. personnel budget

c. sales budget

If actual costs are greater than standard costs, there is a(n) a. normal variance b. favorable variance c. unfavorable variance d. error in the accounting system

c. unfavorable variance

flexible budget shows $36,000 at 18,000 direct labor hours. if $37,400 incurred at 18,400 direct labor hours, flexible budget report shows: a. $1,400 unfavorable b. $600 favorable c. $1,400 favorable d. $600 unfavorable

d. $600 unfavorable

incremental analysis would be appropriate for a. acceptance of an order at a special price b. a sell or process further decision c. a retain or replace equipment decision d. all of these answer choices are correct

d. all of these answer choices are correct

budget reports should be prepared a. daily b. weekly c. monthly d. as frequently as needed

d. as frequently as needed

the culmination of preparing operating budgets is the a. budgeted balance sheet b. cash budget c. production budget d. budgeted income statement

d. budgeted income statement

which of the following is not an operating budget? a. direct labor budget b. production budget c. sales budget d. cash budget

d. cash budget

in a production budget, total required production units are the budgeted sales units plus a. beginning finished goods units b. desired ending finished goods units + beginning finished goods units c. desired ending finished goods units d. desired ending finished goods units - beginning finished goods units

d. desired ending finished goods units - beginning finished goods units

costs that are not responsive to changes in activity can be described as a. mixed b. variable c. flexible d. fixed

d. fixed

which expenses would not appear on a selling and admin expense budget? a. sales commissions b. property taxes c. depreciation d. indirect labor

d. indirect labor

the flexible budget a. is prepared before the master budget b. eliminates the need for a master budget c. is relevant both within and outside the relevant range d. is a series of static budgets at different activity levels

d. is a series of static budgets at different activity levels

the most common budget period is a. one month b. six months c. three months d. one year

d. one year

You have 60,000 lbs of raw materials on Jan 1. You need 120,000 lbs on Jan 31. You need 410,000 lbs for Jan production. How many lbs of materials do you purchase? a. purchase 350,000 lbs b. purchase 290,000 lbs c. purchase 530,000 lbs d. purchase 470,000 lbs

d. purchase 470,000 lbs (material needed for Jan 31 - material already had on Jan 1 + material needed for Jan production)

plant operating at full capacity receives 1 time opportunity to accept order below normal price a. only variable costs are relevant b. the order will likely be accepted c. fixed costs are not relevant d. the order will likely be rejected

d. the order will likely be rejected