Which is NOT a component of the master budget? (Points : 3) Sales budget
Capital budget
Cost of goods sold budget
Budget to actual variance analysis
| 2. (TCO 5) The budgets that are comprehensive financial plans made up of various individual departmental and activity budgets are the (Points : 3) |
operating budgets.
master budgets.
financial budgets.
continuous budgets. |
| 3. (TCO 5) Which is responsible for directing and coordinating the overall budgeting process? (Points : 3) |
Budget committee
Budget director
President
Treasurer |
| 4. (TCO 5) Which is a financial budget? (Points : 3) |
Cost of goods sold budget
Budgeted balance sheet
Marketing expense budget
Production budget |
| 5. (TCO 5) A budget that is developed around the actual level of activity is (Points : 3) |
a static budget.
a continuous budget.
a flexible budget.
None of the above |
| 6. (TCO 5) A budget that is developed around one particular level of activity is (Points : 3) |
a static budget.
a continuous budget.
an incremental budget.
None of the above |
| 7. (TCO 5) Volume variances examine differences between (Points : 3) |
the static budget and actual costs.
the flexible budget and the static budget.
the static budget and the rolling budget.
None of the above |
| 8. (TCO 5) The ideal budget system creates (Points : 3) |
extreme caution in managers.
drive and risk avoidance in managers.
drive and goal congruence in managers.
None of the above |
| 9. (TCO 5) Participative budgeting has which potential problem? (Points : 3) |
Building slack into a budget
Encouraging individual behavior that is in basic conflict with the goals of the organization
Using budgets as a part of performance evaluations, which could lead to unethical behavior
Managers taking action that will improve performance in the short run but has long-term consequences |
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? (Points : 3) |
$12,000
$8,000
$30,000
$20,000 |
