Managerial Accounting Columbia Southern University unit 8

1. When preparing a production budget, the required production equals:

1. budgeted sales + beginning inventory + desired ending inventory.budgeted sales - beginning inventory + desired ending inventory.budgeted sales - beginning inventory - desired ending inventory.budgeted sales + beginning inventory - desired ending inventory.

10 points

QUESTION 2

1. Net operating income is defined as:
2. net income plus interest and taxes.sales minus variable expenses.sales minus variable expenses and traceable fixed expenses.contribution margin minus traceable and common fixed expenses.

10 points

QUESTION 3

1. Which of the following is NOT an objective of the budgeting process?
2. To communicate management's plans throughout the entire organizationTo provide a means of allocating resources to those parts of the organization where they can be used most effectivelyTo ensure that the company continues to growTo uncover potential bottlenecks before they occur

10 points

QUESTION 4

1. Which of the following budgets are prepared before the production budget?
3. Direct Materials Budget
4. Sales Budget
5. A)
6. Yes
7. Yes
8. B)
9. Yes
10. No
11. C)
12. No
13. Yes
14. D)
15. No
16. No
17. Option A
18. Option B
19. Option C
20. Option D

10 points

QUESTION 5

1. All other things being the same, which of the following would increase the residual income?
2. Decreased in average operating assetsDecrease in salesIncrease in minimum required returnDecrease in net operating income

10 points

QUESTION 6

1. Given the following data:
3. Average Operating Assets
4. $250,000
5. Total Liabilities
6. $100,000
7. Sales
8. $600,000
9. Contribution Margin
10. $150,000
11. Net Operating Income
12. $30,000
14. Return on investment (ROI) would be:
15. 5%.
16. 12%.
17. 25%.
18. 60%.

10 points

QUESTION 7

1. The WRT Corporation makes collections on sales according to the following schedule:
3. 25% in month of sale
4. 65% in month following sale
5. 5% in second month following sale
6. 5% uncollectible
8. The following sales have been budgeted:
11. Sales
12. April
13. $120,000
14. May
15. $100,000
16. June
17. $110,000
19. Budgeted cash collections in June would be:
20. $27,500.
21. $98,500.
22. $71,000.
23. $115,500.

10 points

QUESTION 8

1. Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience indicates that none of the sales on account will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be:
2. $169,800.$147,960.$197,880.$194,760.

10 points

QUESTION 9

1. Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The company's net operating income for the year was:
2. $144,000.$120,000.$80,000.$60,000.

10 points

QUESTION 10

1. Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and return on investment 18%. Chabot Company's average operating assets were:
2. $300,000.$60,000.$10,800.$12,000.

10 points