Question 28

Debtors increase by $15,000 and creditors increase by $11,000. The effect on cash flow of the change in working capital is an:

Question 28 options:

a)	increase of $4,000

b)	decrease of $4,000

c)	increase of $26,000

d)	decrease of $26,000

Question 29

Given an original budget of 2,000 units at a variable cost of $3 per unit and actual performance of 1,800 units at an actual cost of $3.20 per unit, the variance based on a flexible budget will be:

Question 29 options:

a)	$360 favorable

b)	$360 unfavorable

c)	$600 favorable

d)	$600 unfavorable

Question 30

The method of adjusting the budget to reflect the actual volume of sales is:

Question 30 options:

a)	flexible budgeting

b)	incremental budgeting

c)	activity-based budgeting

d)	program budgeting