1. Which of the following is NOT a benefit of budgeting? Alt uncovers potential offenecks before they cour B. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts C. It provides benchmarks for evaluating subsequent performance D. It ensures that accounting records comply with generally accepted accounting principles 2. There are various budgets within the master budget. One of these budget is the production budget Which of the following best describes the production budget? All details the required direct labour hours 8 is calculated based on the sales budget and the desired ending inventory D. It summarizes the costs of producing units for the budget period. 3. Which of the following variances in a comprehensive performance report using the flexible budget concept is the most appropriate for measuring efficiency of operations? A Sales volume variance B. Flexible budget variance C. Contribution margin variance D. Total static budget variance 4. Fairmont Inesis an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal manufacturing costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. What best describes this type of an accounting system? A Contribution accounting B. Responsibility accounting C. Absorption accounting D. Operational budgeting 5. A favourable materials price variance coupled with an unfavourable materials quantity variance would MOST Ikely result from which of the following? A Problems with processing machines B. Problems with labour efficiency C. Purchase of low quality materials D. Changes in the product mix 6. Which of the following is NOT true forfed manufacturing overhead costs in a standard costing system? A Any underappled or overappled food manufacturing overhead is the same as the volume variance C. Any volunte variance is the result of applying fixed manufacturing overhead to products, not the resuk of poor cost control D. The budget variance can arise under either a variable product costing system or an absorption product costing system 7. When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, what is the lowest acceptable transfer price as far as the selling division is concmed? A The market price charged to outside customers, less any costs saved by transferring internally C. The full absorption cost of producing a unit of product D. The amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use. 8. Which of the following is the main assumption that is made about managers in general in support of decentralization? A Managers at the local divisional level wil act in the best interest of the organization B. Managers at the local divisional level have noes to better information for operational decisions. C. Top managers at corporate headquarters will act in the best interest of the organization D. Top managers at corporate headquarters have access to better information for operational decisions. 9. The following costs are relevant to the decision situation cited except A the cost of hiring a full-time staff attorney. In a decision to establish an in-house legal department or retain B.the remodeling cost of existing office space in a firm's decision to stay at its current location or move to a the cost to enhance WestJet's Website in a decision to expand citing service to other Mosone or Fort Albany D. the long-term salary cost demanded by Dany Healey la superstar) and Brendan Bell an average player) in hockey contract negotiations, in a decision that determines the amounts by which icket prices must be raised