1.Your friend has just been given a management position at a Polo Ralph Lauren store in her hometown. She knows you took ACCT 2550 and wants your advice on how to be a good manager. Specifically, she would like to know what costs she should take into account when making managerial decisions. From the following list, which scenario includes irrelevant costs?

A.The best salesperson in the store has requested a $2.00 per hour raise.

B.Freight costs could be reduced by 7% if an alternative distribution centre is used.

C.Last year, the store spent $1,400 to upgrade older cash registers.

D.Chinos have a contribution margin of $22, jeans have a contribution margin of $25.

E.Switching all the light bulbs in the store to LED would save $300 per year.

2)

Which of the following is not one of the elements in the Master Budget of a manufacturing company?

A.The Capital Expenditures Budget.

B.The Financial Budget.

C.The Manufacturing Overhead Budget.

D.The Contribution Margin Budget.

E.The Operating Expenses Budget.

3)Huron, Inc. is a manufacturing firm and is finalizing its master budget for the upcoming year. Upon review, you notice that there is something incorrect with how they have formatted the budget. which of the following best represents an error on Huron's master budget?

A.Huron's financial budget portion includes a budget for capital expenditures.

B.Huron has included a budgeted income statement as part of its master budget.

C.Huron included cash collections as part of its combined cash budget.

D.Huron's production budget is being used to drive the direct materials, direct labour, and manufacturing overhead budgets.

E.Huron's operating budget includes a budgeted balance sheet.