Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

True or False 1. Ideal standards are effective in motivating employees to higher productivity. 2. One advantage of budgeting is that it allows subunit managers

True or False 1. Ideal standards are effective in motivating employees to higher productivity. 2. One advantage of budgeting is that it allows subunit managers independence from strategic planning. 3. The manager held accountable for unfavorable material price variances would be the raw materials purchasing manager. 4. The total Variable Cost and Fixed Cost variances should be determined by using a comparison of actual costs to Flexible Budget amounts, but to determine the overall difference between actual costs and the Static Budget amounts, a manager would also have to consider extra or lost Contribution Margin from the difference in Static Budget sales volume and the Flexible Budget sales volume. 5. The production budget, like the sales budget, is expressed in units and dollars. 6. If a company reports monthly production budget columns for January, February, and March as well as a Total First Quarter column, all amounts in the Quarter column will be the total of amounts shown in the January, February, and March columns 7. A production manager usually is responsible for both the direct materials usage variance and the direct labor efficiency variance. 8. If W Company expected to sell 3,000 units of product at a price of $4 each, but actually sold 2,500 units at a price of $5 each, the selling price variance would be $500. 9. No matter how sophisticated the budgeting process is, success, in general, only results if middle and lower-level managers believe that top management is truly interested in the final outcome and is willing to reward people for attaining the budget goals. 10. On the cash budget, each periods ending cash balance becomes the beginning cash balance for the next period. 11. Performance evaluation for managers should be done using flexible budgets, not static budgets.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

3rd Edition

0131494910, 9780131494916

More Books

Students also viewed these Accounting questions

Question

What strategies might you use to support learning in English?

Answered: 1 week ago