1. Which of the following statements concerning zero-based budgeting is true?

A.Zero-based budgeting specifies that every line item must be rounded to the nearest thousand dollar increment.

B.Zero-based budgeting specifies that every expenditure must be justified.

C.Zero-based budgeting is a variation of the incremental approach.

D.Zero-based budgeting is mainly used to assess research and development departments and similar departments where the relationship between inputs and outputs is weakest.

2.The Mighty Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:

Direct materials	2 lb. @ $40 = $80
Direct labor	1 hr. @ $48 = $48
Variable overhead	75% of direct labor costs
Fixed overhead	50% of direct labor costs

What is the total cost reported in the manufacturing cost budget?

A)	$128,000
B)	$ 47,000
C)	$ 94,000
D)	$ 80,000

3. Anderson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail-order distributors for $12 each and that manufacturing and other costs are as follows:

Variable Cost per Unit		Fixed Cost Per Month
Direct material	$4.00	Factory overhead	$17,000
Direct labor	0.40	Selling and administrative	8,000
Factory overhead	0.50
Distribution	0.10
Total	$5.00	Total	$25,000

The variable distribution costs are for transportation to mail-order distributors. Also assume the current monthly production and sales volume is 20,000 and monthly capacity is 25,000 units.

If the sales price per unit increases by $2.00 and unit sales decrease by 2,000 units, Andersons monthly profit would:

A)	Decrease by $22,000
B)	Not change
C)	Increase by $36,000
D)	Increase by $22,000

4.

Johnson and Johnson Company is considering a new drilling machine for its production plant to replace an old drilling machine that originally cost $10,000 and has $7,000 of accumulated depreciation.

The new machine can be purchased at a cash cost of $16,000, but the distributor of the new drilling machine has offered to take the old machine in as a trade-in, thereby reducing the cost of the new machine to $14,000.

Based only on this information, calculate the total relevant cost of acquiring the new machine.

A)	$16,000, or the gross cost of the new machine
B)	$14,000, or the net cash paid plus the book value ($3,000) of the old machine
C)	$14,000, or the net cash paid to the distributor
D)	$16,000, or the gross cost of the new machine minus the $1,000 loss on disposing of the old machine

5.

Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities.

During the past year, it has incurred:

Cost	Description
$725,000	Product development costs
$475,000	Materials handling costs
$1,250,000	Production line labor costs
$450,000	Production setup costs
$250,000	Power costs (for cooling beer and running equipment)
$875,000	Manufacturing facility management costs

Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

A)	$ 425,000
B)	$1,250,000
C)	$1,975,000
D)	$1,945,000

6.

Doggle, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:

Maintenance	$400,000
Inspection	200,000

The following data have been assembled for use in developing a bid for a proposed job:

Direct materials	$3,000
Direct labor	$8,000
Machine-hours	200
Number of inspections	2
Direct labor-hours	400

The practical capacity of machine-hours for all jobs during the year is 12,500, and for inspections is 400. These are the cost drivers for maintenance and inspection costs, respectively.

Using the appropriate cost drivers, the total cost of the potential job is:

A)	$11,000
B)	$18,400
C)	$16,300
D)	$36,800

7.

Salvador Company sells two products, as follows:

	Selling Price per Unit	Variable Expense per Unit
Product Y	$300	$150
Product Z	700	300

Fixed expenses total $500,000 annually. The expected sales mix in units is 60% for Product Y and 40% for Product Z.

How much is Salvador Company's expected break-even sales in dollars?

A)	$920,000
B)	$414,000
C)	$900,000
D)	$555,882

8. When management directs attention only to those activities not proceeding according to plan, they are engaging in

A)	activity-based management.
B)	organization-based management.
C)	Management by exception.
D)	just-in-time management.

please anwser in detail