TCO 5) Which is NOT a component of the master budget?
Sales budget
Capital budget
Cost of goods sold budget
Budget to actual variance analysis
Question 2.2. (TCO 5) The budgets that are concerned with the income-generating activities of a firm are called the
operating budgets.
master budgets.
financial budgets.
continuous budgets.
Question 3.3. (TCO 5) The budget committee
has the responsibility to review the budget.
resolves differences that may arise as the budget is prepared.
prepares financial statements for the auditor.
Both A and B
Question 4.4. (TCO 5) Which is NOT a component of the cash budget?
Sales forecast
Cash disbursements
Financing
Cash excess or deficiency
Question 5.5. (TCO 5) A budget that is developed around the actual level of activity is
a static budget.
a continuous budget.
a flexible budget.
None of the above
Question 6.6. (TCO 5) The budget most appropriate for control purposes is the
static budget.
flexible budget.
continuous budget.
incremental budget.
Question 7.7. (TCO 5) Flexible budgets do NOT provide
expected costs for a range of activity.
budgeted costs for the actual level of activity.
budgeted costs for a predetermined level of activity.
expected costs for the actual performance level.
Question 8.8. (TCO 5) The ideal budget system creates
extreme caution in managers.
drive and risk avoidance in managers.
drive and goal congruence in managers.
None of the above
Question 9.9. (TCO 5) Realistic budgets reflect
actual levels of activity, full capacity usage, efficiencies, and general economic trends.
actual levels of activity, seasonal variations, efficiencies, and general economic trends.
ideal levels of activity, full capacity usage, efficiencies, and general economic trends.
ideal levels of activity, full capacity usage, and efficiencies.
Question 10.10. (TCO 5) Bored Manufacturing has projected the following.
Units to be produced
2,000
Direct materials
4 pounds at $5
$20
Direct labor
1 hour at $8
$8
Variable overhead
75% of direct labor
Fixed overhead
50% of direct labor
Which is the total amount of overhead included in the overhead budget?
$12,000
$8,000
$30,000
$20,000