Managerial Accounting Final
budgets are
future oriented
hosbach corp expects no waste and no inefficiencies in the production process this type of standard is refer to as
ideal standard
A direct materials budget would be used in which of the following types of companies?
manufacturing
Which of the following budgets is the comprehensive planning document for the entire organization?
master budget
if the sales revenue volume variance is favorable, then it is likely that
more units were actually sold than the company had originally budgeted to sell
Which of the following budgets would NOT be prepared by a service company?
production budget
the usual starting point for a direct labor budget for a manufacturer is the
production budget
what variances make up the direct labor variance
rate variance and efficiency variance
What two variances make up the direct labor variance?
rate variance and efficiency variance.
Which of the following would appear on both the budgeted income statement and the cash budget?
rent expense
what will happen to return on investment (roi) if total assets decrease while everything else remains the same
roi will increase over time
Usually, the first step in the budgetary process is the preparation of the
sales budget
Budget committees would include all of the follow except
shareholder
Which of the following is NOT an advantage of using standard costs and variances?
A. Changes behavior of managers to obtain desired variances
a company expects to receive which of the following e=benefits when it uses its budgeting process
all of the listed items are benefits of the budget process
A retailer is considering whether to invest in a warehouse routing system that costs $1,200,000, has a $100,000 residual value, and should lead to cost savings of $275,000 per year for its five-year life. In calculating the accounting rate of return (ARR), which of the following numbers should be used as the ARR equation's denominator?
1.2 mil
Which type of budgeting involves the participation of many levels of management?
Participative budgeting
After a company has made an investment in a capital asset, what will it conduct to compare the actual net cash inflows to the projected net cash inflows?
Post audit
1. Which of the following is NOT true of the budgeting process?
The performance report is prepared as part of the master budget.
What does a linear trendline indicate?
There is a strong relationship between x and y.
which perspective of the balanced scorecard would number or repeat customers be
customer
At lean companies, employees tend to be multi-skilled and cross-trained to perform a variety of tasks. These workers are valued by management and are considered to be part of the team rather than a labor force to be handled and controlled. Consequently, this
decreases the importance of direct labor standards.
A company receives an unusually high number of orders. To complete all the orders on time, the company pays employees an extra $10 per hour for every hour of overtime the employees work. Which of the following variances will be directly impacted?
direct labor rate variance
The variable overhead rate variance may be caused by variances in the following production inputs except
direct materials
a company receives an unusually high number of orders. to compete all the orders on time the company pays employees an extra $10 per hour for every hour of overtime the employees work. which of the following variances will be directly impacted
direct materials price variance
mitchell bakery uses butter in producing its pies, if the piece of butter doubles which variance is directly impacted
direct materials price variance
andrew taylor - a production line worker at yani yogurt spilled an entire vat of milk. the milk must be discarded rather than used in yogurt. which variance is directly impacted
direct materials quantity variance
which type of variance causes operating income to be higher than the budgeted operating income
favorable variance
johnson and johnson's consumer healthcare division that manufactures and sells products including band aid, nuetrogenam and listerine is most likely treated as a
investment center
the income statement is part of which element of a companys master budget
the operating budget
which of the follow is the starting point for the master budget
the sales budget
decentralization would typically not be based on
total revenue
A manager purchased better quality materials for a slightly higher cost than anticipated. However, as a result, spoilage was less than normal. What is the effect on the price and quantity variances respectively?
unfavorable, favorable
