1)

When you examine Huron's combined cash budget, you also notice something incorrect. Which of the following facts would you flag for the company's accountant to follow-up on?

A.The company has added the beginning cash balance from January to the expected cash collections for the month to calculate the total cash available.

B.Huron uses the beginning cash balance from the previous month to determine the ending cash balance for the following month.

C.The company has indicated that seems to already know the months in which it will need to borrow cash from the bank.

D.Huron calculates its interest expense by multiplying the amount of the loan by the number of months they had the loan, and then by the monthly interest rate.

E.Huron's combined cash budget includes both cash collections and cash disbursements portions.

2)Which of the following statements about flexible budgets is NOT true?

A.The flexible budget variance is the difference between the flexible budget amount and the actual amount.

B.Flexible budgets are mainly used for variance evaluation, while static budgets are more widely used for planning.

C.Managers use flexible budgets for planning revenues and expenses at difference sales volumes.

D.Sometimes its valuable for managers to see a graph of the flexible budget costs.

E.Companies can use flexible budgets at the end of the accounting period to evaluate financial performance.

3)Which of the following is not a benefit of using standard costs?

A.Standard costs are valuable as benchmarks in control systems.

B.Standard costs allow managers to better negotiate input prices.

C.Quantity and price standards help to predict costs and evaluate variances.

D.Flexible budget values are based upon standard costs.

E.All of the above are true benefits of using standard costs.