Question 13

0.6pts

Which of the following pertains to flexible budgeting?

Group of answer choices

the process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time

a budget that is established at the beginning of the period and not adjusted for different levels of actual sales activity

a budget that sets allowances based on prior year expenditures

a budget that presents the plan for a range of activity

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Question 14

0.6pts

A manager is deciding whether it should continue producing a certain material or just purchase the same from an outside supplier. A cost that is irrelevant to this decision is

Group of answer choices

prime costs

variable overhead

fixed overhead that will continue even if the part is bought from an outside vendor

fixed overhead that will be avoided f the part is bought from an outside vendor

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Question 15

0.6pts

A company hired workers with less skill than those already working. Which variance would least likely be affected?

Group of answer choices

material price variance

variable overhead efficiency variance

labor rate variance

material usage variance

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Question 16

0.6pts

Kaizen means

Group of answer choices

continuous improvement

implementation of a centralized organizational structure

employee empowerment

doing it the Japanese way

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Question 17

0.6pts

In a make or buy decision, the relevant costs include variable manufacturing costs as well as

Group of answer choices

factory management costs

depreciation costs

general office costs

avoidable fixed costs

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Question 18

0.6pts

The cash budget should help to ensure

Group of answer choices

the cash dividends can be paid every quarter

that enough cash is available to pay salaries and wages, even if it means borrowing money

sufficient liquidity without an excess amount of idle cash

that enough cash is always on hand to satisfy maximum cash requirements