1) Budgeted sales for Parker Corporation for the second quarter the year are shown below:

	APRIL	MAY	JUNE
UNITS	40,000	30,000	38,000

The company has a policy that requires the ending inventory in each period to be 15 percent of the following period's sales. Assuming that the company follows this policy, what quantity of production should be scheduled for May?

A.

28,800 units

B.

25,000 units

C.

31,200 units

29,700 units

2)Normally, the bulk of a firms cash receipts is:

	A.	Sales of assets
	B.	Collections from customers (credit sales)
	C.	Borrowings
	D.	Extraneous revenue

3)Normally, the bulk of a firms cash receipts is:

A.

Sales of assets

B.

Collections from customers (credit sales)

C.

Borrowings

D.

Extraneous revenue

4)The _______________ is an example of financial budgets.

A.

Budgeted balance sheet

B.

Sales budget

C.

Direct material budget

D.

Budgeted income statement

5)Which of the following is not an "operating" budget?

	A.	production budget
	B.	sales budget
	C.	purchases budget
	D.	capital budget

6)The cash budget is normally included in the financial budget of a firm.

True

False

7 )Given actual amounts of a mixed (semivariable) cost for various levels of output, which of the following will give the most precise mathematical measure of the fixed and variable components with the availability of Excel spreadsheets?

	A.	Regression analysis (Least-squares method)
	B.	High-low method
	C.	Scattergram approach
	D.	Bayesian statistics

8)Which one of the following is an example of semi-variable (mixed) costs?

	A.	Insurance
	B.	Supplies
	C.	Supervisor's salaries
	D.	Maintenance