Question $1$

Muttiple Choice

Insert letter of

answer in bes.

$1$ A flexible budget is one:

$15$ marks helowe

$($b$)$ Prepared for severat possible tevels of sates revenue

$($c$)$ That is not part of the byaster beral manager after preparation by a department

$($d$)$ That includes onty thaster budget $$

$2$ When calculating additional payroll costs, which of the following does not include controlled tips?

$($a$)$ vacation pay

$($b$)$ WSIB

$($c$)$ income tax

$($d$)$ employment insurance

$3$ To calculate contribution margin:

$($a$)$ Sales revenue plus variable costs

$($b$)$ Sales revenue less fixed costs

$($c$)$ Sales revenue less variable costs

$($d$)$ Sales revenue less fixed costs less variable costs

$4$ Contribution margin represents

$($a$)$ The investment the owner has contributed to the business

$($b$)$ The money left after variable costs to cover fixed costs and profit

$($c$)$ The money left after fixed costs to cover profits

$($d$)$ The profit from operations that contibutes to company wealth

$5$ In using the CVP equation, the sales level required in units to breakeven is determined by dividing:

$($a$)$ The sales level in dollars by unit variable cost

$($b$)$ Fixed costs plus operating income by $100\%$ minus the variable cost percentage

$($c$)$ Fixed costs plus net income by the contribution margin percent

$($d$)$ Fixed costs by contribution margin in dollars

$6$ The CVP formula will

$($a$)$ Give an answer more accurate than a graph

$($b$)$ Give an answer less accurate than a graph

$($c$)$ Give an answer equally accurate as a graph

$($d$)$ Always give the same answer as a graph

$7$ Short$-$term budgets differ from long$-$term budgets in that a short$-$term budget is:

$($a$)$ for a day, week, or month and a long$-$term one is for six months or a year

$($b$)$ expressed in monetary terms where a long$-$term budget is generally expressed in the number of customers or some other measure

$($c$)$ usually for a year or less and long$-$term budgets are in excess of a year

$($d$)$ prepared by an accountant and a long$-$term budget is prepared by a manager

$8$ When departmental budgets are increased each year by a flat percentage rate, this is known as:

$($a$)$ Zero Based Budgeting

$($b$)$ Incremental budgeting

$($c$)$ Incidental budgeting

$($d$)$ Inflationary budgeting

$($b$)$ tew emisilyes turtiovent

$($c$)$ tewe wapers

reherntly insedetiate trathine

$11$ Remittance to Aevemue Canada Includes:

$($a$)$ Employee's Income tax, CPP premilums, El premitims and company assessmens

$($b$)$ Employee's Income tak, CPP premlums, El premitims, WSIB premloms and company assessment,

$($c$)$ Employee's Income tax, CPP premiums, El premiums

$($d$)$ All money with held from an employee's pay cheque

$12$ Gross margin is important because:

$($a$)$ It shows how much is available to pay current liabitities

$($b$)$ it measures the change in equity

$($c$)$ it shows how much is available to pay fixed costs

$($d$)$ it shows what is left to pay variable costs

$13$ Which of the following is an example of sound internal controt:

$($a$)$ one person in control of recording inventory and receiving inventory from suppliers

$($b$)$ allowing employees to work without taking vacation to maintain consistency

$($c$)$ accepting suppliers' reports of quantities shipped without verification to cut costs

$($d$)$ performing physical inventory counts to verify company records

$14$ Variance analysis is a method of:

$($a$)$ analyzing cost of sales to sales

$($b$)$ analyzing limiting factors

$($c$)$ studying variations in budgeting process

$($d$)$ analyzing causes of differences between budgeted and actual figures

$15$ Gross Profit is:

$($a$)$ sales revenue less inventory.

$($b$)$ sales revenue less operating expenses.

$($c$)$ sales revenue less cost of goods sold.

$($d$)$ sales revenue less liabilities.