The sales manager purposely underestimates the selling price at budgeting time in order to "look good when the actual numbers come in. This is an example of Select one: O a. Kaizen budgeting Ob.Benchmarking O Padding the budget O d. Zero Based Budgeting Jemima's Outfits has a store in Dixie Outlet Mall. It specializes in high-class ladies fashions and sells complete outfits for a uniform price of $75 each The sales budget for 2007 was to sell 6,000 outfits. If the actual sales for 2007 are 6,750 units, there would be Select one: O a. a favourable sales variance O b. an unfavourable sales variance O ca favourable cost variance O d. an unfavourable cost variance O e none of the above A preferred share dividend Select one: O a. is paid before interest is paid O b. has preference of payment over a common share dividend O c. is the result of a stock split O d. is always paid each year O e, none of the above If the cash budget shows a short-term cash surplus, the company should Select one: O a. do nothing O b. purchase additional plant and equipment O c. plan to invest the surplus in short-term assets O d. plan to invest the surplus in long-term assets O e. none of the above Varal Co. had sales of $2,500,000, total assets of $2,000,000 and owners' equity of $1,000,000. Operating profit was $250,000 and net income after tax and interest) was $200,000. Return on investment for return on owners' equity) was Select one: O a. 10.0% b. 12.5% C 15.0% O d. 20.0% O e none of the above B Company could process 25,000 units of product per month, but it is only processing 17,500 units per month. B Company has Select one O a a decision crisis O b. 7,500 units of excess capacity O c a free lunch O d. a fixed cost situation e none of the above Recognizing revenues in the period when they are eamed, rather than the period when the cash is received, is an example of which accounting concept? Select one: O a. Business entity O b. Matching O Conservatism d. Historic cost Oe. None of the above A labour union is an example of a Select one: 0 a. Charity O b. Not-for-profit organization O C. For-profit organization O d. None of the answers are correct