Budgets are:

a.

Tools only used for planning activity

b.

Tools used for both planning and controlling activities

c.

Tools only used for controlling activity

Budgets:

a.

Are publicly available to external users if they are prepared by listed companies

b.

Can be prepared only in multi-products company

c.

Are useful to allocate resources inside the company

If, all data being the same, actual costs are higher than budgeted costs:

a.

There is an unfavourable variance for the company

b.

There is a favourable variance for the company

c.

The company makes a loss

If, all data being the same, actual revenues are higher than budgeted revenues:

a.

The company makes a loss

b.

There is an unfavourable variance for the company

c.

There is a favourable variance for the company

In a company, managerial accounting:

a.

Focuses only on historical data

b.

Is required by law

c.

Is addressed to internal users only

In a manufacturing company, depreciation of equipment:

a.

Is typically an administrative cost

b.

Is typically a fixed cost

c.

Is typically a variable cost

The break-even point:

a.

Is the ratio between the revenues and the contribution margin per unit

b.

Is the ratio between variable costs per unit and the contribution margin per unit

c.

Is the ratio between fixed costs in total and the contribution margin per unit

The break-even point:

a.

Can be calculated only if the company is achieving a target profit

b.

Enables to identify the margin of safety of the company

c.

Cannot be calculated if the company is making a loss

The calculation of the break-even point:

a.

Involves only variable costs

b.

Involves both fixed and variable costs

c.

Involves only fixed costs

The calculation of the break-even point:

a.

Can be performed in both single and multiple-product companies

b.

Can be performed in multiple-product companies only

c.

Can be performed in single-product companies only

The comparison between budgeted and actual data:

a.

Enables the identification of variances

b.

Enables the calculation of taxes due

c.

Can always be performed by external users

The contribution margin per unit:

a.

Is the difference between selling price per unit and variable costs per unit

b.

Is the difference between revenues and fixed costs in total

c.

Is the difference between fixed costs in total and variable costs per unit

The preparation of the budget:

a.

Requires the development of forecast data

b.

Is required by law at the end of each year

c.

Requires the development of historical data

The sales mix:

a.

None of the other two answers is true

b.

Is the specific combination of different selling prices used by the company

c.

Is used to calculate the break-even point in a multi-product company

The scope of Managerial Accounting involves:

a.

Controlling activity only

b.

Planning activity only

c.

Both controlling and planning activities

Total costs of raw materials:

a.

Are not used in the calculations of the break-even point

b.

Are typically variable costs

c.

Are typically fixed costs