The schedule of receipts from accounts receivable (debtors) is prepared to provide information for the:

a.

cash budget.

b.

sales budget.

c.

production budget.

d.

budgeted balance sheet.

With the internal rate of return method, the required rate of return of an entity is normally:

a.

15%

b.

the government bond rate.

c.

the cost of capital.

d.

the current borrowing rate.

Which of the following budgeted expenses has a favourable variance?

a.

Advertising $20,000, actual advertising $30,000.

b.

Telephone $5,000, actual telephone $4,700.

c.

Salary and wages $22,000, actual salary and wages $23,000.

d.

Interest $500, actual interest $500.

Which of the following statements is not an important assumption regarding CVP analysis?

a.

The sales mix for multiple products remains constant.

b.

Cost behaviour is linear.

c.

Unit price and cost data vary over the time period.

d.

Fixed costs remain fixed.