1. The budget summarizing future plans for acquiring plant facilities and equipment is called:

A. Main budget

B. Flexible budget

C. Static budget

D. Capital expenditures budget

2. A budget that adjusts for varying rates of activity is called a/an:

A. main budget

B. Flexible budget

C. Static budget

D. Capital expenditures budget

3. Which budget is prepared first?

A. main budget

B. sales budget

C. Static budget

D. Capital expenditures budget

4. Companies use a series of budgets that are linked together in a:

A. Master budget

B. Sales budget

C. Capital expenditures

D. Cash budget

5. This term is synonymous with the phrase What a product should cost?

A. Standard cost

B. Variable cost

C. Correcting the variances

D. Actual cost

6. A budget that is prepared for several periods in the future and then revised several times prior to the budget period

A. main budget

B. Rolling budget

C. Static budget

D. Capital expenditures budget

7. The difference between actual cost and standard cost is termed:

A. Cash cost

B. Cost variance

C. Flexible variance

D. Company cost

8. Costs that tend to remain the same (within the relevant range) in total, regardless of the level activity are called ___________________.

A. Variable cost

B. Fixed cost

C. Mixed Cost

D. Activity base

9. For General Motors Corporation, which of the following is a product cost?

A. CEOs salary

B. Steel

C. Salary of a marketing executive

D. Depreciation

10. For which of the following businesses would the process cost system be appropriate?

A. Automobile repair shop

B. Crude oil refinery

C. Home remodeling company

D. Custom jewelry maker