Question
QUESTION 10 Which of the following types of budgeting procedures is the most effective for measuring performance? Static budgeting Capital budgeting Flexible budgeting Strategic budgeting
QUESTION 10
- Which of the following types of budgeting procedures is the most effective for measuring performance?
Static budgeting | ||
Capital budgeting | ||
Flexible budgeting | ||
Strategic budgeting |
QUESTION 11
- The flexible budget:
Is not constrained to the relevant range | ||
Eliminates the need for a master budget | ||
Is prepared before the master budget | ||
Is a series of static budgets at different levels of activity |
QUESTION 12
- Responsiblity accounting is the concept:
A firm is responsible for reporting to the public all activities that have a social impact, such as pollution control | ||
Each activity within a firm is controlled by a manager who is accountable for costs; costs and revenues; or costs, revenues, and investments, depending on the degree of responsibillity assigned | ||
A firm should apply generally accepted accounting principles on a basis consistent with preceding years | ||
A firm should be objective in accounting and should use historical costs rather than current-value concepts |
QUESTION 13
- In which of the following is a manager responsible for costs, revenues and assets?
Revenue center | ||
Cost center | ||
Profit center | ||
Investment center |
QUESTION 14
- Pharmall Company manufactures two types of medicine, Ezsleep and Pepeze. The company can sell as many bottles of each product as it can produce, but production is limited by availability of direct labor hours. The revenues, costs and labor products for the two products are shown below. How much larger or samller would Pharmall's earnings be if the company proudcted Pepeze instead of Ezsleep with the 1,000 available direct labor hours?
| EZ Sleep | Pepeze | ||
|
|
| ||
Selling price per 100 bottles | $400 | $600 | ||
Variable costs per 100 bottles | $240 | $200 | ||
Labor costs per 100 bottles | 10 | 20 | ||
$4,000 larger |
| |||
$4,000 smaller |
| |||
$6,000 larger |
| |||
$6,000 smaller |
|
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