1. Which of the following budgets would be prepared last?

   	A.	operating expense budget
   	B.	cash budget
   	C.	purchases budget
   	D.	production budget

QUESTION 2

1. A difference between the planned and actual contribution margin (CM) would not be caused by:

   	A.	an increase of decrease in sales volume
   	B.	any of these would cause a difference between planned and actual CM
   	C.	an increase or decrease sales price per unit
   	D.	an increase or decrease in fixed costs per unit
   	E.	an increase or decrease in variable cost per unit

QUESTION 3

1. The actual and planned direct labor costs for the period are as follows:

   Actual	Planned
   100,000 hours	105,000 hours
   $10.25 per hour	$10.00 per hour

   The quantity factor for the direct labor cost is:

   	A.	$52,500 favorable
   	B.	$52,500 unfavorable
   	C.	$50,000 unfavorable
   	D.	$50,000 favorable
   	E.	none of these

Question 4: Another name for absorption costing is:

	A.	full costing
	B.	variable costing
	C.	standard costing
	D.	direct costing

QUESTION 6

1. The actual and planned direct labor costs for the period are as follows:

   Actual	Planned
   100,000 hours	105,000 hours
   $10.25 per hour	$10.00 per hour

   The price factor for the direct labor cost is:

   	A.	$26,250 favorable
   	B.	$26,250 unfavorable
   	C.	none of these
   	D.	$25,000 favorable
   	E.	$25,000 unfavorable

QUESTION 7

1. Under variable costing, which of the following costs would not be included in inventory?

   	A.	all of these costs would be included in inventory
   	B.	fixed factory overhead
   	C.	direct labor
   	D.	variable factory overhead
   	E.	direct materials

QUESTION 8

1. A method of budgeting that provides for maintaining a twelve-month projection into the future is called:

   	A.	flexible budgeting
   	B.	zero-based budgeting
   	C.	perpetual budgeting
   	D.	continuous budgeting

QUESTION 9

1. Budgeted credit purchases for Kelsey Company for the first quarter of the year are as follows:

   Month	Budgeted Purchases
   January	$325,000
   February	$250,000
   March	$300,000

   The company pays for 60% of its purchases in the month of the purchase and 40% in the following month. Kelseys budgeted February cash payments for purchases would be:

   	A.	$230,000
   	B.	$345,000
   	C.	$250,000
   	D.	none of these
   	E.	$280,000

QUESTION 10

1. A budget prepared for a particular level of activity is called a(n):

   	A.	continuous budget
   	B.	fixed budget
   	C.	static budget
   	D.	flexible budget