Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following should a good budget be? Select one: a.Based on whatever assumptions are necessary to secure new loan funding at the lowest

Which of the following should a good budget be?

Select one:

a.Based on whatever assumptions are necessary to secure new loan funding at the lowest possible interest.

b.Directed solely at expenditure.

c.Specific, Measurable, Assignable, Realistic and Time-Related.

d.The same every year

Which of the following would cause the most problems for a budget holder?

Select one:

a.Being given regular budget monitoring reports

b.Being given the freedom to choose from a range of suppliers

c.Being given responsibility for managing uncontrollable costs

d.Being told to continue producing large quantities of a commodity which the company is unlikely to be able to sell at more than its cost

Which of the following is an advantage of zero-base budgeting?

Select one:

a.It allows operational managers at all levels to participate in budgeting decisions

b.It allows the development of challenging income and expenditure targets without being tied to past budgets

c.It excludes overheads

d.Itguarantees that revenue and expenditure targets are realistic

You are drawing up a flexible budget for next year's income and expenditure. Your company has both fixed and variable costs.

If sales income is 24 billion, the budgeted profit is 6 billion.

If sales income is only 12 billion as a result of weak demand, with no change in selling prices, what will the budgeted profit be?

Select one:

a.Less than 3 billion and possibly negative.

b.Between 0 and 3 billion

c.3 billion

d.Between 3 billion and 6 billion

Variance analysis has shown that a production department has a favourable materials usage variance of 500,000 and an unfavourable materials price variance of 600,000 for the last three months.

What should the directors require the budget-holder to do?

Select one:

a.Agree that the use of more expensive materials in the pursuit of reduced usage by volume has been counter-productive, apologise in person and in writing to theBoard of Directors and to the shareholders at the Annual General Meeting, attend a financial management training courseand agree to use the materials in the original design in future.

b.Ensure that next year's materials budget is increased by 400,000.

c.Keep reducing the amount of materials used but find cheaper materials.

d.Report, with evidence,on the reasons why the price and quantity of materials used differed from the budget.

hich of the following is a tool to predict how financial performance will change overall if one or morekey factors change?

Select one:

a.Accounting Rate of Return

b.Capital budgets

c.Sensitivity analysis

d.Variance analysis

Which of the following would notimprove an organisation's cash flow?

Select one:

a.Collecting a higher percentage of the money owed by customers.

b.Increasing sales.

c.Paying taxes early.

d.Selling a lorry which you never use.

Your department makes and sells baseball caps.

Each baseball cap costs your company 5 to make.

You sell each baseball cap for 10.

Each baseball cap sold costs an additional 2 in selling and distribution costs.

Calculate the unit contribution for each baseball cap sold.

Select one:

a.3

b.5

c.8

d.10

Your department makes and sells sweatshirts.

Each sweatshirt costs your company 15 to make.

You sell each sweatshirt for 30.

Each sweatshirt sold costs an additional 5 in selling and distribution costs.

Your department's fixed costs are 240,000.

Calculate the breakeven point for your department as a number of sweatshirts sold.

Select one:

a.8,000

b.9,600

c.16,000

d.24,000

Your company makes standard-sized cardboard boxes.

Your company's annual fixed costs are 4,200,000.

Your breakeven point for one year's sales is 7,000,000 boxes.

Last year you sold 9,000,000 boxes.

How much profit did you make last year?

Select one:

a.560,000

b.1,200,000

c.5,600,000

d.6,800,000

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

Step: 3

blur-text-image

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

Business Law Today The Essentials

Authors: Roger LeRoy Miller

12th Edition

035703791X, 9780357037911

More Books

Students also viewed these Economics questions

Question

Identify three ways in which rationalism differs from empiricism.

Answered: 1 week ago