If a cost is incurred to support the administrative functions and is not classified as direct labor or direct material, it is part of overhead. Question 5 options: True False

Question 6 (1 point) Period costs are associated with manufacturing overhead incurred during production. Question 6 options: True False

Question 7 (1 point) Saved Total manufacturing cost is also referred to as cost of goods manufactured. Question 7 options: True False

Question 8 (1 point) When inventory is sold to customers, its cost is removed from Work in Process Inventory and transferred to Cost of Goods Sold. Question 8 options: True False Question 9 (1 point) Saved The Work in Process Inventory account contains the costs of all products that have been started but are not yet complete.

Question 9 options: True False Question 10 (1 point) The production costs of completed products are recorded in the Finished Goods Inventory account. Question 10 options: True False Question 11 (1 point) An application base is the amount of overhead to be allocated to various jobs. Question 11 options: True False Question 12 (1 point) Job order costing systems are not used exclusively by manufacturers; many service organizations use job order costing. Question 12 options: True False Question 13 (1 point) If the amount of underapplied or overapplied manufacturing overhead is small, most companies will make the entry to close the Manufacturing Overhead account by charging the entire amount to Work in Process. Question 13 options: True False Question 14 (1 point) To adjust for underapplied overhead, the journal entry includes a debit to Cost of Goods Sold and a credit to Manufacturing Overhead Control. Question 14 options: True False Question 15 (1 point) Overapplied overhead means that not enough overhead cost was charged to products during the production process. Question 15 options: True False Question 16 (1 point) A budget is an operating plan that may be expressed in either financial or non-financial terms. Question 16 options: True False Question 17 (1 point) Top-down budgeting is also referred to as participative budgeting. Question 17 options: True False Question 18 (1 point) Budgeting is ineffective unless it is tied to strategy and used to manage an organization's overall performance. Question 18 options: True False Question 19 (1 point) Deviations from the budget can occur because of good decisions, bad decisions, or events. Question 19 options: True False Question 20 (1 point) Budgetary slack is more common in a top-down approach to budgeting than in a bottom-up approach. Question 20 options: True False Question 21 (1 point) A rolling budget always includes 12 months of data and as one month ends, it is removed from the budget and the entire budget rolls forward one month. Question 21 options: True False Question 22 (1 point) Ideal standards represent a level of performance that can be attained with reasonable effort. Question 22 options: True False Question 23 (1 point) The predetermined overhead rate is calculated as: Budgeted Total Manufacturing Overhead divided by Budgeted Activity Level of Application Base. Question 23 options: True False Question 24 (1 point) The master budget is a collection of smaller budgets that lead to pro-forma financial statements. Question 24 options: True False Question 25 (1 point) The first component of the master budget is the cash budget. Question 25 options: True False Question 26 (1 point) Since the cash budget drives all other components of the master budget, it is imperative that it be as realistic as possible. Question 26 options: True False Question 27 (1 point) To prepare the sales budget, multiply the forecasted sales units by the budgeted sales price per unit. Question 27 options: True False Question 28 (1 point) The formula for the production budget is Budgeted Sales + Budgeted Beginning Inventory Budgeted Ending Inventory = Budgeted Production. Question 28 options: True False Question 29 (1 point) The key inputs for the direct materials purchases budget are the production budget and the direct materials standards for each project. Question 29 options: True False Question 30 (1 point) Pro-forma financial statements are prepared based on assumed rather than actual results. Question 30 options: True False Question 31 (1 point) Since the purchasing agent is responsible for ordering raw materials, he or she would be the one to negotiate a volume discount. Question 31 options: True False Question 32 (1 point) Budgets assist managers in the areas of planning, controlling, evaluating, and decision-making. Question 32 options: True False Question 33 (1 point) Preparing a budget allows managers to Question 33 options: plan for the future. reduce the need for unprepared responses to unexpected situations. assess whether a division's strategic direction is in line with corporate strategy. All of these answer choices are correct. Question 34 (1 point) Which of the following is not a characteristic of a bottom-up budget environment? Question 34 options: Executive management creates the budget. At each higher level of management, the budget is reviewed and may be altered. The budget approach may also be referred to as participative budgeting. All of these answer choices are characteristics of a bottom-up budget environment. Question 35 (1 point) Which of the following is a disadvantage of participative budgeting? Question 35 options: It is considering to be rolling throughout each budget period. Managers may pad the budget. It is a method of tactical planning. It requires each amount to be justified each budget period. Question 36 (1 point) An imposed budget Question 36 options: tends to elicit more commitment to the budget from employees since they have had some input into its creation. begins at the lowest levels of management and filters up through the organization. is the least efficient method of budget preparation. involves the fewest number of people in the budgeting process. Question 37 (1 point) Under both participative budgeting and imposed budgeting, the process is Question 37 options: linear. iterative. curvilinear. None of these answer choices are correct. Question 38 (1 point) A manager estimates that revenues for the coming period will be $85,000 but includes only $80,000 in her budget. This is an example of Question 38 options: pro-forma variance. revenue slack. budgetary padding. unfavorable planning. Question 39 (1 point) Which of the following is the most popular way to begin the budgeting process? Question 39 options: The incremental approach Zero-based approach Rolling approach Padding approach. Question 40 (1 point) Which of the following budget approaches begins each year at $0 and each individual budget item must be justified? Question 40 options: Dollar value-based budgeting Governmental-based budgeting Justification-based budgeting Zero-based budgeting Question 41 (1 point) In a manufacturing setting, practical standards do not allow for Question 41 options: machine breakdowns. employee fatigue. vacations. excess employee idleness. Question 42 (1 point) Which of the following is not a criticism of ideal standards? Question 42 options: Product quality may decline if standards are not met. Employee morale will suffer if standards are not met. Employees may take shortcuts in order to meet the standards. Employees will perform with zero defects. Question 43 (1 point) Direct materials standards specify both Question 43 options: quantity and efficiency. quantity and price. efficiency and price. quality and usage. Question 44 (1 point) In the manufacturing of swimsuits, in addition to the price of fabric, the standard materials price includes all of the following items except Question 44 options: the cost of shipping. the cost of advertising. a volume discount. sales taxes. Question 45 (1 point) The standard price of direct labor includes all of the following except Question 45 options: payroll taxes. health insurance. retirement contributions. employee-paid union dues. Question 46 (1 point) The standard price of direct labor does not include which of the following items? Question 46 options: FICA taxes health insurance retirement contributions vacation pay. Question 47 (1 point) Because people talk about wage rates rather than wage prices, we refer to standard direct labor prices as direct labor rates, expressed as Question 47 options: per direct labor hour. per unit. a percentage. per direct labor dollar. Question 48 (1 point) The time needed to produce one unit of product is referred to as Question 48 options: the direct labor efficiency standard. the direct labor time standard. the direct labor quantity standard. the direct labor standard. Question 49 (1 point) The calculation for the standard direct labor cost is Question 49 options: standard wage rate per direct labor hour actual quantity of direct labor hours. standard wage rate per direct labor hour standard quantity of direct labor hours. actual wage rate per direct labor hour standard quantity of direct labor hours. actual wage rate per direct labor hour actual quantity of direct labor hours. Question 50 (1 point) The predetermined overhead rate is calculated by Question 50 options: dividing the budgeted activity level of application base by the budgeted total manufacturing overhead. multiplying the budgeted activity level of application base by the budgeted total manufacturing overhead. dividing the budgeted total manufacturing overhead by the budgeted activity level. multiplying the budgeted total manufacturing overhead by the budgeted activity level. Question 51 (1 point) Overhead is typically divided into which of the following components? Question 51 options: Direct and indirect Fixed and variable Product and period Controllable and non-controllable. Question 52 (1 point) Tanger Products plans to produce 10,000 units in January. Each unit requires 3 pounds of plastic, which costs $2 per pound. What standard material cost would the company use to plan for production? Question 52 options: $2 $6 $3,333 $5,000 Question 53 (1 point)