Multiple Choice (Cirele the best answer) 1. Which of the following is not a benefit of budgeting? a. It reduces the need for tracking actual cost activity. b. It sets benchmarks for evaluation performance. It uncovers potential bottlenecks. It formalizes a manager's planning efforts. a. adding the desired ending inventory of raw materials to the raw materials needed to meet the production s b. subtracting the beginning inventory of raw materials from the raw materials needed to meet the production 2. The budgeted amount of raw materials to be purchased is determined by schedule. c. adding the desired ending inventory of raw materials to the raw materials needed to meet the production sci and subtracting the beginning inventory of raw materials. d. ading the beginning inventory of raw materials to the raw materials needed to meet the production schedul subtracting the desired ending inventory of raw materials Which of the following statements about profit planning is false? a. One benefit of budgeting is that it coordinates the activities of the entire organization. b. Planning and control are essentially the same thing c. Both planning and control are needed for an effective budgeting system. d. The master budget is a network consisting of many separate budgets that are interdependent. 3. of the following is not correct regarding the manufacturing overhead budget? a. Since manufacturing overhead budgets are usually fixed, there's not need to prepare a budget for it. b. Manufacturing overhead costs should be broken down by cost behavior c. The manufacturing aring overhead budget should provide a schedule of all costs of production other than direct materials and direct labor. d. A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget 5. When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n): (CMA, adapted combined price and quantity variance. a. b. price variance. c. efficiency variance. d. quantity variance. 6. The purpose of a flexible budget is to: a. remove items from performance reports that are not controllable by managers. b. permit managers to reduce the number of unfavorable variances that are reported. update the statie planning budget to reflect the actual level of activity of the period. Dreduce the amount of conflict between departments when the master budget is prepared. c Which of the following would not appear on a flexible budget performance report as shown in the textbook? a. Variable costs. b. c. d. 7. Mixed costs. A flexible budget adjusted to the actual level of activity. The previous year's actual costs