19) Which is the last step in developing the master budget?

1. Preparing the cash budget
2. Preparing the budgeted balance sheet
3. Preparing the cost of goods manufactured budget
4. Preparing the budgeted income statement

21) The investigation of materials price variance usually begins in the:

1. controller's office.
2. accounts payable department.
3. purchasing department.
4. first production department.

23) Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

1. Department managers' performances should not be evaluated based on actual results to budgeted results.
2. Department managers should only be held accountable for controllable variances for their departments.
3. Department managers should be held accountable for all variances from budgets for their departments.
4. Department managers should be credited for favorable variances even if they are beyond their control.

25) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income?

1. $9,000decrease
2. $45,000 increase
3. $6,000 decrease
4. $6,000 increase