Problem 1: The budgeting process:
a) defines goals and objectives
b) coordinates business activities
c) motivates employees
d) all of the above
Problem 2: A method of attributing costs to products based on assigning costs of resources to activities and assigning costs of activities to products is known as Unit Based Costing.
a) true
b) false
Problem 3: When inventory is sold, it is reported on the Balance Sheet as an expense called Cost of Goods Sold.
a) True
b) False
Problem 4: Net income appears on which two financial statements?
a) statement of owner's equity and balance sheet
b) income statement and balance sheet
c) income statement and statement of owner's equity
d) balance sheet and statement of cash flows
Problem 5: Costs that change in direct proportion to changes in some particular activity level are known as
a) production costs
b) capital expenditures costs
c) variable costs
d) fixed costs