If a manager builds slack into a budget, how would that manager handle estimates of revenues and expenses? Expenses Revenues A. Underestimate Underestimate B. Underestimate Overestimate C. Overestimate Underestimate D. Overestimate Overestimate Estimate correctly E. Estimate correctly Select one: A. Choice A B. Choice B O C. Choice C D. Choice D E. Choice E A company's sales budget would likely affect all of the following except: Select one: O A. budgeted advertising and promotions. O B. past sales levels and trends. O C. the company's product costing policy O D. the company's pricing policy. Dawson Company has a union contract which calls for an 8% cost of living increase in the wages paid to all factory workers as of July 1 of the current year. Under normal circumstances, this suggests that: Select one: OA. The standard labor cost per unit cannot be revised as of July 1 O B. The nature (U or F) of the labor rate variance for July should not be affected by this raise. O C. The labor rate variances during the first half of the current year have been favorable. O D. The labor efficiency variance for July will be unfavorable. Select the correct statement about budgeting and human behavior. Select one: OA. People usually can be very uncomfortable with budgets. O B. The attitudes of upper managers significantly impact budget effectiveness O C. Participatory budgets increase individual freedom within an organization. O D. Sometimes budgeting contributes to fear and resentment. E. All of the above are true. When considering whether to investigate a variance, managers should consider which of the following? Select one: A. size. B. pattern of recurrence. C. trends over time. D. controllability. E. all of the above. The use of inexpensive, low quality, materials can results in: Select one: O A. A favorable materials price variance. O B. An unfavorable labor efficiency variance. O C. An unfavorable materials quantity variance. OD. All of the above. OE. None of the above is true. Which of the following is an incorrect statement regarding variances? Select one: A. A variance can be calculated only for expenses B. A variance can be favorable or unfavorable. C. A variance is unfavorable when expected sales are more than actual sales. D. A variance is a difference between budgeted and actual amounts. Which of the following is an incorrect statement regarding variances? Select one: A. A variance can be calculated only for expenses B. A variance can be favorable or unfavorable. C. A variance is unfavorable when expected sales are more than actual sales. D. A variance is a difference between budgeted and actual amounts. One company's practice is to provide bonuses to salespeople who exceed their sales targets. Which of the following advantages of budgeting enables the company to establish its recognition program? Select one: A. Coordination B. Performance measurement C. Corrective action D. Planning Which of the following would have effect, either direct or indirect, organization's cash budget? on an Select one: A. Sales revenues. B. Outlays for professional labor. C. Advertising expenditures. D. Raw material purchases. O E. All of the above. F. None of the above answers are correct. Seven Falls Cuisines has the following flexible-budget formula: Y= $13PH+ $450,000 where PH is defined as process hours. Which of the following statements is (are) true? Select one: O A. Seven Falls has $450,000 of variable costs. O B. Each additional hour of process time is expected to cost Seven Falls $13. O C. Y would equal the amount shown as "total fixed cost" in the company's flexible budget. D. Both Seven Falls has $450,000 of total costs and each additional hour of process time is expected to cost Seven Falls $13. E. All of the answers are correct