14. Which of the following statements about budgeted financial statements is not true? (Points : 4) A.Budgeted financial statements need to adhere to the same format as the audited financial statements. B.Development of budgeted financial statements is facilitated by spreadsheet programs. C.Budgeted financial statements reflect the results of operations assuming all budgeted predictions are correct D.Budgeted financial statements are hypothetical

Question 15. 15. Which of the following costs would be reported in the general and administrative expense budget? (Points : 4)

A.Factory overhead B.Sales commissions

C.Direct manufacturing labor

D.Expenses incurred in an accounting department

Question 16. 16. William Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 40 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired. Beginning accounts payable is $152,000. For William Company, the ending accounts payable should be: (Points : 4)

A. $156,000 B.$244,000 C.$356,000 D.$404,000

Question 17. 17.

The Year 1 selling expense budget for Caryn Corporation is as follows:

Budgeted sales	$2,000,000
Selling costs:
Delivery expenses	$20,000
Commission expenses	40,000
Advertising expenses	20,000
Office expenses	12,000
Miscellaneous expenses	30,000
Total	$ 122,000

Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $2,400,000. What will be the value for commission expenses in the Year 2 selling expense budget? (Points : 4)

A.$20,000 B.$24,000 C.$48,000 D.$22,000

Question 18. 18.

The Year 1 selling expense budget for Zing Corporation is as follows:

Budgeted sales	$500,000
Selling costs:
Delivery expenses	$5,000
Commission expenses	10,000
Advertising expenses	5,000
Office expenses	3,000
Miscellaneous expenses	5,500
Total	$ 30,500

Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $600,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget? (Points : 4)

A. $6,200 B.$4,200 C.$7,500 D.$3,600

Question 19. 19. Grace Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 20 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Gross sales for the quarter are projected as follows: January, $40,000; February, $20,000; and March, $60,000. Accounts receivable on December 31 were $30,000. Grace's expected cash collections for March would be: (Points : 4)

A.$60,000 B.$46,400 C.$47,200 D.$76,400

Question 20. 20. In what way does a cost center differ from either an investment center or a profit center? (Points : 4)

ACost centers are a much less common component of current business organizations, given the increased emphasis on value chain analysis B.A cost center is always smaller than either an investment center or a profit center. C.A cost center recognizes neither revenues nor computes income. D.Both A and B are correct

Question 21. 21.

Structuring performance reports and addressing them to individuals as group members of an organization in a manner that emphasizes factors that can be controlled by them is accomplished by using which of the following?

(Points : 4)

A.Absorption costing B.Absorption costing C.Responsibility accounting D.Relational concepts

Question 22. 22. A flexible budget variance for a manufacturing cost is computed as the difference between: (Points : 4)

A.Flexible budget costs and static budget costs B.Actual costs and flexible budget costs C.Departmental costs and cost center costs D.Flexible budget costs and original budget costs

Question 23. 23. Assume that the standard cost to make one unit of product includes 10 units of raw materials at a price of $3 per unit. In July, 34,000 units of raw materials were purchased for $100,800, and 20,800 units of raw materials were used to produce 2,000 units of finished product. What is the materials quantity variance? (Points : 4)

A.$2,400 (U) B.$ 800 (U) C.$1,200 (F) D.$1,200 (U)

Question 24. 24. Assume that the standard cost to make one finished unit includes 2 hour of direct labor at $8 per hour. During April, 22,000 direct labor-hours were worked, 10,500 units of product were manufactured, and total direct labor cost was $170,000. What is the labor rate variance for April? (Points : 4)

A.$2,000 (U) B.$2,000 (F) C.$6,000 (F) D.$6,000 (U)

Question 25. 25. The objective of standard cost variance analysis is: (Points : 4)

A.To identify standard cost variances and to explain the reasons for their occurrences B.To explore the reason or reasons for variation in sales prices of products offered in the company