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6. John Company produces hand tools. Budgeted sales will be: March 12,000 units, April 14,000, May 16,000 and June 19,000. Ending finished goods inventory policy is 10% of the following month's sales. March 1 inventory is projected to be 1,500 units. How many units will be produced in March? a) 11,900 b) 12,200 c) 13,000 d) 14,800 7. Which of the following is not a functional budget? a) Labour budget b) Cash budget c) Materials budget d) Expenses budget 8. Which is the mostly likely purpose of budgeting? a) Planning and control of an organization's income and expenditure b) Preparation of a five-year business plan c) Company valuation d) Assess the non-financial performance of an organization 9. The costing system in which individual activities are identified as the cost object is considered as a) manufactured costing b) activity based costing c) allocation costing d) base costing 10. Many traditional costing systems a) trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates b) write off manufacturing overhead as an expense of the current period c) combine widely varying elements of overhead into a single cost pool d) produce results far superior to those achieved with activity-based costing