Accounting Exam III

Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Group starts

T

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

T

The labor efficiency variance is labeled favorable (F) if the actual hours used is less than the standard hours allowed for the actual output.

T

The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.

T

The selling and administrative budget is typically prepared before the cash budget.

T

Budgets are used for the distinct purposes of planning and profit.

F

The disbursements section of a cash budget consists of all cash payments for the period except cash payments for dividends.

F

control involves developing goals and preparing various budgets to achieve those goals

F

Production Budget

sales budget + the desired ending inv.