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On the cash budget, how is the cash at the end of the period calculated? A. beginning Cash + Collections from Customers - Cash Disbursements

On the cash budget, how is the cash at the end of the period calculated?
  • A. beginning Cash + Collections from Customers - Cash Disbursements
  • B. Collections from Customers - Cash Disbursements
  • C. Cash Disbursements - Collections from Customers
  • D. beginning Cash - Collections from Customer

Red Corp. has a unit Contribution Margin of $6, Variable Expenses of $2 per unit, and Fixed Expenses of $3,000. What is Red Corp.'s break even point?

  • A. 500 units
  • B. 50 units
  • C. 1,500 units
  • D. 750 unit s

Which of the following is FALSE regarding special orders?
  • A. All costs associated with making the product need to be evaluated.
  • B. A special order is a one-time order outside of normal operations.
  • C. Only incremental costs and revenues need to be evaluated.
  • D. Fixed costs should be ignored

Green Corp. spends 10 direct labor hours on Job 123 and incurs $300 of direct materials charges and $250 of direct labor charges. If the predetermined overhead rate is $9 per direct labor hour, what is the total cost of Job 123?

  • A. $90
  • B. $640
  • C. $390
  • D. $550

When evaluating a "make or buy" decision
  • A. Evaluate all costs that are relevant to making the parts of buying them from an outside supplier.
  • B. Evaluate all sunk costs with regard to the machinery used to make the product.
  • C. Evaluate all future costs, even those that are the same whether making or buying.
  • D. Only evaluate the costs associated with buying the parts.

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