QUESTION 8 A cost that will not be affected by later decisions is termed an opportunity cost. True False QUESTION 14 A manager in a cost center also has responsibility and authority over the revenues and the costs. True False QUESTION 15 A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting. True False QUESTION 20 After the sales budget is prepared, the capital expenditures budget is normally prepared next. True False QUESTION 27 At the end of the fiscal year, variances from standard costs are usually transferred to the: direct labor account factory overhead account cost of goods sold account direct materials account QUESTION 29 Budget performance reports prepared for the vice-president of production would generally contain less detail than reports prepared for the various plant managers, True False QUESTION 32 Cameron Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $25,000. At 8,000 units of production, a flexible budget would show: variable costs of $64.000 and $25,875 of fixed costs variable costs of $64,000 and $25,000 of fixed costs variable costs of $72,000 and $25,000 of fixed costs variable and fixed costs totaling $112,000 QUESTION 33 Chicks Corporation had 51,100,000 in invested assets, sales of $1.210.000, income from operations amounting to 5242,000, and a desired minimum rate of return of 15% The profit margin for Chicks is: 204 22% 15% 32% QUESTION 34 Consulting the persons affected by a budget when it is prepared can provide an effective means of motivation and cooperation True False QUESTION 36 Controllable expenses are those that can be influenced by the decisions of the profit center management True False QUESTION 37 Cuisine Inc. manufactures flatware sets. The budgeted production is for 75,000 sets in 2012. Each set requires 2.5 hours to polish the material. If polishing labor costs $15.00 per hour, determine the direct labor budget for 2012. T T T T Paragraph : Arial : 3 (12pt) - E - T- %DO QE SE TT, O2 - - - O Sx Mashups. Tuo QUESTION 41 Eliminating a product or segment may have the long-term effect of reducing fixed costs. O True False QUESTION 53 Mallard Corporation uses the product cost concept of product pricing Below is cost information for the production and sale of 45.000 units of its sole product. Mallard desires a profit equal to a 12 rate of return on invested assets of $800.000 Fored factory overhead cost 582.000 Fixed selling and administrative costs 45.000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7,65 Variable factory overhead cost per unit Variable selling and administrative cost per unit The unit selling price for the company's product is $19.95 $15.75 522.05 521.26 QUESTION 54 Management accountants usually provide for a minimum cash balance in the cash budgets for which of the following reasons stockholders demanda minimum cash balance is an important way of effectively manang cash provides a safety buffer for variations in estimates to have funds for major capital expenditures QUESTION 55 Mandolin Company has two divisions Division is interested in purchasing 10.000 units from Division Capacity is available for Division to produce these units. The per un market price is $30 per unit, with a variable cost of $17. The manager of Division Ahas offered to purchase the unitatis perutin an effort to make this transfer price beneficial for the company as a whole, what is the range of prices that should be used duringoiations between the two divisions $15 to 10 $15 to $17 Over 530 517 to QUESTION 60 Periodic comparisons between planned objectives and actual performance are reported in: O zero-base reports budget performance reports master budgets budgets QUESTION 68 nd operating expenses, and the capital expenditures budget. The cash budget is affected by the sales budget, the various budgets for True False