Multiple Choice Questions 1. Using the data in the simple example on Pg. 1 of the Production Budget.pdf document, what would be Finished Units to Produce if Units in Beginning Inventory were 5 rather than 20? A. 110 B. 100 C. 90 D. 80 2. Which one of the following statements is correct? A. Finished Units to Produce on the Production Budget will be an input to the Direct Labor Budget. B. Total Dollar Sales on the Sales Budget is an input to the Production Budget. C. Finished Units to Produce on the Production Budget will be an input to the Cash Budget. D. None of the above statements are correct. Answer: B Answer: B
1. Using the data in the simple example on Pg.3 of the Manufacturing Overhead Budget.pdr document, What would be Total Manufacturing Overhead Cost if Total Direct Labor Hours were 200 rather than 100 ? A. $400 B. $450 C. $600 D. $650 2. Which one of the following statements is correct? A. Total Variable Overhead Cost does not change when the level of manufacturing activity changes. B. Total Fixed Overhead Cost does not change when the level of manufacturing activity changes. C. Total Manufacturing Overhead Cost is an input to the Cash Budget. D. Total Cash Payments for Manufacturing Overhead is an input to the Cost of Goods Sold Budget. 1. Using the 1st Qtr. data in the simple example on Pg.2 of the Cash Budget.pdf document, what would be ist Qtr. Interest Paid on the Bank Loan if ist Qtr. Cash Colloctions were $300 rather than $500 ? A. $12 B. $14 C. $16 D. $18 2. Which one of the following statements is correct? A. Ending Cash Balance on the Cash Budget is an input to the SG\&A Budget. B. Ending Cash Balance on the Cash Budget is an input to the Forecasted Income Statement. C. Ending Cash Balance on the Cash Budget is an input to the Sales Budget. D. None of the above statements are correct. 1. Using the data in the simple example on Pg.1 of the Cost of Goods Sold Budgetpdf Answer: document, what would be Cost of Goods Sold if Raw Materials Inventory as of December 31,2025 was $25 rather than $20 ? A. $990 B. $995 C. $1,000 D. $1,005 2. Which one of the following statements is correct? Answer: A. Cost of Goods Sold, on the Cost of Goods Sold Budget, is an input to the Forecasted Balance Sheet. B. Cost of Goods Sold, on the Cost of Goods Sold Budget, is an input to the Cash Budget. C. Cost of Coods Sold, on the Cost of Goods Sold Budget, is an input to the Forecasted Income Statement. D. None of the above statements are correct. 1. Using the data in the simple example on Pg.1 of the Direct Labor Budget.pdf document, What would be Total Direct Labor \$'s if Finished Units to Produce were 80 rather than 100 ? A. $400 B. $500 C. $600 D. $700 2. Which one of the following statements is correct? A. The Direct Labor Budget is more difficult than the Raw Materials Budget. B. Total Direct Labor Hours is an input to the Cost of Goods Sold Budget. C. Total Direct Labor \$'s is an input to the Manufacturing Overhead Budget. D. None of the above statements are correct. 1. Using the data in the simple example on Pg. 2 of the SG\&A Budget.pdf document, Answer: what would be Total SG\&A Cost if Variable SG\&A Cost per Unit Sold was $2 rather than $3 ? A. $150 B. $250 C. $350 D. $450 2. Which one of the following statements is correct? Answer: A. Total SG\&A Fixed Cost changes based on the level of activity. B. Total SG\&A Variable Cost changes based on the level of activity. C. Total SG\&A Cost is an input to the Cash Budget. D. None of the above statements are correct. 1. Using the data in the simple example on Pg:1 of the Production Budgetpdf document, What would be Finished Units to Produce if Units in Beginning Inventory were 5 rather than 20 ? A. 110 B. 100 C. 90 D. 80 2. Which one of the following statements is correct? A. Finished Units to Produce on the Production Budget will be an input to the Direct Labor Budget. B. Total Dollar Sales on the Sales Budget is an input to the Production Budget. C. Finished Units to Produce on the Production Budget will be an input to the Cash Budget. D. None of the above statements are correct. 1. Using the data in the simple example on Pg.1 of the Raw Materials Budget.pdf document, what would be Total Cost of Raw Material Purchases if Pounds of Raw Material Needed in Ending Raw Materials Inventory were 30 rather than 25 ? A. $635 B. $625 C. $645 D. $615 2. Which one of the following statements is correct? A. Total Cost of PsP Purchases on the Raw Materials Budget will be an input to the Forecasted income Statement. B. Total Cost of PsP Purchases on the Raw Materials Budget will be an input to the Forecasted Balance Sheet. C. Total Cost of PsP Purchases on the Raw Materials Budget will be an input to the Cost of Goods Sold Budget. D. None of the above statements are correct. 1. Using the data in the simple example on Pg.1 of the Finished Goods Inventory Budgetpdf Answer document, what would be the value of the 100 Finished Units if 4 th qtr. cost of an hour of Direct Labor was $8 rather than $10 ? A. $6,000 B. $6,800 C. $7,600 D. $8,400 2. Which one of the following statements is correct? Answer A. Finished Goods Inventory as of Dec. 31,2025 is an input to the Cash Budget. B. Finished Goods Inventory as of Dec. 31, 2025 is an input to the Raw Materials Budget. C. Finished Goods Inventory as of Dec. 31,2025 is an input to the Cost of Goods Sold Budget. D. None of the above statements are correct
