Question
1. Which of the following statements is correct concerning the Cash Budget? Multiple Choice The Cash Budget never includes cash disbursements from selling and administrative
1. Which of the following statements is correct concerning the Cash Budget?
Multiple Choice
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The Cash Budget never includes cash disbursements from selling and administrative expenses, it only includes disbursements from product costs.
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The Cash Budget must be prepared before any other budgets.
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The Cash Budget does not contain any depreciation expenses.
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The ending cash balance is calculated by adding cash collected to the beginning cash balance for the period.
2. Hiss Corporation's activity for the last six months is as follows:
Machine Hours | Electrical Cost | |||||
July | 2,000 | $ | 1,560 | |||
August | 3,000 | $ | 2,280 | |||
September | 2,400 | $ | 1,750 | |||
October | 1,900 | $ | 1,520 | |||
November | 1,800 | $ | 1,450 | |||
December | 2,100 | $ | 1,600 | |||
Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
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$280
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$260
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$210
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$235
3. The starting point for the Direct Labor Budget is:
Multiple Choice
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the materials to be purchased from the direct materials budget.
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the units to be sold from the sales budget.
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the ending inventory from the budgeted balance sheet.
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the units to be produced from the production budget.
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