Accounting Chap 20,21,22 Questions – Flashcards

A formal statement of future plans, usually expressed in monetary terms, is a:

The process of planning future business actions and expressing them as a formal plan is called:

Effective budgeting requires all of the following except:

Which of the following is not a benefit of following a well-designed budgeting process?

Which of the following is not a benefit derived from budgeting?

Which of the following statements about budgeting is false?

A budget is best described as:

Preparing a master budget is usually the responsibility of

The most useful budget figures are developed:

The overall coordinating activity of the budget process is the responsibility of the:

The set of periodic budgets that are prepared and periodically revised in the practice of continuous budgeting is called

A formal statement of future plans, usually expressed in monetary terms, is a:

The process of planning future business actions and expressing them as a formal plan is called:

Effective budgeting requires all of the following except:

Which of the following is not a benefit of following a well-designed budgeting process?

Which of the following is not a benefit derived from budgeting?

Which of the following statements about budgeting is false?

A budget is best described as:

Preparing a master budget is usually the responsibility of:

The most useful budget figures are developed:

The overall coordinating activity of the budget process is the responsibility of the:

The set of periodic budgets that are prepared and periodically revised in the practice of continuous budgeting is called:

The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, adding a new budget each period so that the budgets always cover the same number of future periods, is called:

The usual budget period is:

Operating budgets include all the following budgets except the:

Which of the following is a financial budget?

The master budget includes:

The usual starting point for preparing a master budget is forecasting or estimating:

A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expense to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a:

The master budget process usually ends with:

Which of the following budgets is not an operating budget?

A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:

A plan that lists the types and amounts of general and administrative expenses expected during the budget period is referred to as a:

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

A plan showing the units of goods to be sold and the revenue to be derived from sales, that is the usual starting point in the budgeting process, is called the:

A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n):

Which of the following factors is least likely to be considered in preparing a sales budget?

A quantity of merchandise or materials over the minimum needed reduce the risk of running short is called:

When preparing the cash budget, all the following should be considered except:

A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):

Which budget must be completed after a cash budget is prepared?

Which of the following would not be used in preparing a cash budget for October?

A managerial accounting report that presents predicted amounts of the company's revenues and expenses for the budget period is called a:

A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period is called a(n):

Standard costs are:

The costs that should be incurred under normal conditions to produce a specific product or component or to perform a specific service are:

Standard costs are used to measure:

The difference between actual and standard cost caused by the difference between the actual price and the standard price is called the:

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:

The difference between the actual cost incurred and the standard cost is called the:

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as:

A planning budget based on a single predicted amount of sales or production volume is called a:

An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity) and that presents the differences between actual and budgeted amounts as variances is called a(n)

Static budget is another name for:

Variable budget is another name for:

46. An internal report that compares actual cost and sales amounts with budgeted amounts and identifies the differences between them as favorable or unfavorable variances is called a:

A performance report compares the differences between:

Sales analysis is useful for:

A flexible budget is prepared:

Which department is often responsible for the direct materials price variance?

Overhead cost variance is:

Which of the following variances is not used in a standard cost system?

The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:

The difference between the total budgeted overhead cost and the overhead applied to production using the predetermined overhead rate is the:

Regarding overhead costs, as volume increases:

When recording variances in a standard cost system:

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:

Which of the following would not be considered a cost center?

Which of the following is most likely to be considered a profit center?

A unit of a business that not only incurs costs but also generates revenues is called a:

A profit center:

An accounting system that provides information that management can use to evaluate the profitability and/or cost effectiveness of a department's activities is a:

A department that incurs costs without directly generating revenues is a:

Regardless of the system used in departmental cost analysis:

An expense that does not require allocation between departments is a(n):

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

Expenses that are not easily associated with a specific department, and which are incurred for the benefit of more than one department, are:

The salaries of employees who spend all their time working in one department are:

A difficult problem in calculating the total costs and expenses of a department is:

The allocation bases for assigning indirect costs include:

The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be:

Costs that the manager has the power to determine or at least strongly influence are called:

A report that specifies the expected and actual costs under the control of a manager is a:

An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:

Costs that the manager does not have the power to determine or strongly influence are:

Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:

The most useful evaluation of a manager's cost performance is based on:

Which of the following would not appear on a responsibility accounting performance report?

In a responsibility accounting system:

Responsibility accounting performance reports:

A responsibility accounting performance report documents:

A responsibility accounting report that compares actual costs and expenses for a department with the budgeted amounts is called a(n):

A responsibility accounting system:

63. Under which of the following conditions is a market-based transfer price likely to be used?

A single cost incurred in producing or purchasing two or more essentially different products is a(n):

Allocations of joint product costs can be based on the relative market values of the products:

Allocating joint costs to products can be based on their relative:

General Chemical produced 10,000 gallons of Greon and 20,000 gallons of Baron. Joint costs incurred in producing the two products totaled $7,500. At the split-off point, Greon has a market value of $6 per gallon and Baron $2 per gallon. What portion of the joint costs should be allocated to Greon if the basis is market value at point of separation?

Which of the following is an example of a performance measure of internal business processes that would be found in a balanced scorecard:

Which of the following is an example of a performance measure of the customer perspective that would be found in a balanced scorecard?

Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?

Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?

In the preparation of departmental income statements, the preparer completes the following steps in the following order:

The amount by which a department's revenues exceed its direct costs and expenses is the:

Departmental contribution to overhead is calculated as revenues of the department less:

Process time is the time:

Wait time is the time:

Midwest Rocks receives and produces an order. What is the company's value-added time assuming the following times were measured during production of this order? Process time: .7 days Inspection time: .25 days Move time: 1.05 days Wait time: .5 days