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Which of the following have to be ready before the direct labor budget?Capital expenditures budacquire.Merchandise purchases budgain.Selling cost budobtain.Budgeted earnings statement.Production budgain.
A managerial audit report that presents predicted quantities of the company"s revenues and costs for the budobtain period is called a:Continuous profit statement.Budgeted income statement. Budgeted balance sheet.Rolling revenue statement.Master plan.
All of the adhering to are important for budgets to be reliable except:All budgeted quantities need to be invested to ensure that budgets aren"t diminished for the next period. Managers need to be mindful of potential negative outcomes of budgeting, such as budgetary sabsence.Goals have to be difficult and attainable.Employees affected by a budget have to be consulted once it is all set.Evaluations need to be made very closely through avenues to describe differences between actual and budgeted quantities.
Operating budgets include all the complying with except the:Selling expense budgain.Production budget.General and also administrative expense budget.Sales budacquire.Budgeted balance sheet.
The usual beginning allude for preparing a understand budobtain is forespreading or estimating:Income.Cash payments.Expenditures.Production.Sales.
The usual budacquire period for a lot of providers is:An annual duration separated right into quarterly and also monthly budgets. An annual duration separated right into weekly budgets.An yearly period of 250 working days.A quarterly period separated into weekly budgets.A monthly period separated right into daily budgets.
A arrangement that reports the devices or prices of merchandise to be purchased by a merchandising firm in the time of the budgain duration is dubbed a:Sales budget.Capital expenditures budget.Selling expenses budacquire.Cash budget.Merchandise purchases budacquire.
Which of the adhering to budgets is not an operating budget?Production budgain.Sales budgain.Selling prices budgain.Cash budobtain. General and also governmental price budacquire.
A arrangement that reflects the meant cash inflows and also cash outflows in the time of the budacquire duration, including receipts from loans essential to maintain a minimum cash balance and also repayments of such loans, is referred to as a(n):Rolling budobtain.Cash budacquire. Capital expenditures budget.Income statement.Operating budobtain.
The grasp budget procedure commonly ends with:The budgeted balance sheet. The overhead budobtain.The sales budobtain.The production budgain.The offering cost budacquire.
Which of the adhering to accounts would show up on a budgeted balance sheet?All of the choices are correct.Sales comobjectives.Depreciation expense.Income tax cost.Accounts receivable.
The procedure of planning future business actions and expushing them as a formal plan is called:Budgeting. Standard cost analysis.Managerial bookkeeping.Variance analysis.Cost bookkeeping.
A formal statement of future plans, typically expressed in financial terms, is a:Variance analysis.Budget. Prospectus.Variance report.Position statement.
The central guidance of the budobtain procedure is the obligation of the:Budget Committee. Board of Directors.Chief Accounting Officer.Chief Financial Officer (CFO).Chief Executive Officer (CEO).
The conventional materials expense to create 1 unit of Product R is 6 pounds of material at a typical price of $50 per pound. In production 8,000 units, 47,000 pounds of material were offered at a expense of $51 per pound. What is the straight products quantity variance?$50,000 favorable.$3,000 favorable.$50,000 unfavorable.$47,000 unfavorable.$47,000 favorable.
$50,000 favorable.AQ × SP 47,000 pounds * $50/pound $ 2,350,000 SQ × SP 8,000 units x 6 pounds/unit * $50/pound 2,400,000 Direct products amount variance $50,000 F
Standard expenses are used in the calculation of:Price, quantity, and sales variances.Price and amount variances. Quantity and sales variances.Price variances just.Quantity variances only.
The difference in between actual price per unit of input and also the standard price per unit of input outcomes in a:Quantity variance.Standard variance.Controllable variance.Volume variance.Price variance.
Standard expenses are:Uniform among carriers within an sector.Precollection costs for delivering a product or service under normal problems.Actual costs incurred to develop a particular product or perdevelop a company.Radepend completed.Establiburned by the IMA.
Use the complying with information to uncover the straight labor price variance if the agency produced 7,000 units of product during the period. Standard: Direct labor (3.2 hrs. per unit
$7.50/hr.) $183,750 $26,950 favorable.$14,700 favorable.$14,700 unfavorable.$12,250 unfavorable. $12,250 favorable.
$12,250 unfavorable. AH * AR Given. $183,750 AH SR 24,500 hrs. $7/hr. $171,500 Direct labor rate variance $12,250 U
Hassock Corp. produces wcooktop wall hangings. It takes 2 hrs of direct labor to develop a single wall hanging. Hassock"s conventional labor cost is $12 per hour. Throughout August, Hassock created 10,000 systems and also supplied 21,040 hrs of straight labor at a total cost of $250,376. What is Hassock"s labor performance variance for August?$12,480 unfavorable. $14,584 unfavorable.$10,376 unfavorable.$12,480 favorable.$4,160 favorable.
$12,480 unfavorable.AH SR 21,040 $12 $252,480 SH SR (2 × 10,000) * $12 $240,000 Direct labor effectiveness variance $12,480 U
Fletcher Company type of built up the following information regarding production of among its assets. Compute the conventional quantity enabled for the actual output. Direct materials conventional (6 lbs.
$2/lb.) $12 per finiburned unitActual direct products offered 243,000 lbs.Actual finimelted devices developed 40,000 unitsActual expense of direct products offered $483,570 80,000 pounds.243,000 pounds.240,000 pounds. 480,000 pounds.40,000 pounds.
A budacquire based upon numerous different levels of task, regularly including both a best-case and also worst-situation scenario, is referred to as a:Rolling budget.Production budgain.Fixed budacquire.Merchandise purchases budacquire.Flexible budobtain.
In this form of manage system, the grasp budobtain is based upon a solitary prediction for sales volume, and the budgeted amount for each cost essentially assumes that a details amount of sales will occur:Variable budget.Flexible budobtain.Sales budacquire.Standard budget.Fixed budget.
Fletcher Company type of collected the adhering to information regarding production of one of its products. Compute the direct labor price variance. Direct labor standard (2 hrs.
$12.75/hr.) $25.50 per finished unitActual straight labor hrs 81,500 hrs.Actual finiburned units created 40,000 unitsActual expense of direct labor $1,100,250 $61,125 favorable.$19,125 unfavorable.$61,125 unfavorable. $80,250 unfavorable.$80,250 favorable.
$61,125 unfavorable. Actual cost = $1,100,250; AH SR = (81,500 $12.75) = $1,039,125Direct labor rate variance = $61,125 unfavorable
Fletcher Company kind of built up the adhering to information concerning manufacturing of among its products. Compute the straight products amount variance.Direct materials standard (6 lbs.
$2/lb.) $12 per finished unitActual direct products offered 243,000 lbs.Actual finiburned devices produced 40,000 unitsActual expense of straight materials used $483,570 $3,570 unfavorable.$3,570 favorable.$6,000 unfavorable. $2,430 unfavorable.$2,430 favorable.
$6,000 unfavorable. AQ SP = 243,000 $2.00 = $486,000; SQ SP = 40,000 6 * $2.00 = $480,000Direct materials quantity variance = $6,000 unfavorable
A project was budgeted to need 3 hrs of labor per unit at $8.00 per hour. The job had 8,000 units and was completed in 22,000 hrs at a complete labor cost of $198,000. What is the straight labor rate variance?$16,000 favorable. $22,000 unfavorable.$16,000 unfavorable.$6,000 unfavorable.$22,000 favorable.
$22,000 unfavorable. AH * AR Given. $198,000 AH SR 22,000 hrs $8/hour 176,000 Direct labor price variance $22,000 U
Summerlin Company kind of budgeted 4,000 pounds of material costing $5.00 per pound to create 2,000 systems. The agency actually supplied 4,500 pounds that cost $5.10 per pound to develop 2,000 units. What is the straight products price variance?$2,550 unfavorable.$2,500 unfavorable.$450 unfavorable. $400 unfavorable.$2,950 unfavorable.
$450 unfavorable.AQ × AP 4,500 pounds * $5.10/pound $22,950 AQ × SP 4,500 pounds * $5.00/pound 22,500 Direct materials price variance $450 U
A agency gave the following straight materials price indevelopment. Compute the direct products quantity variance.Standard costs assigned: Direct products typical expense (405,000 systems
$2.20/unit) $888,250 $2,500 Unfavorable.$2.500 Favorable. $78,250 Favorable.$2,750 Unfavorable$2,750 Favorable.
$2.500 Favorable.Direct products amount variance = $2.00 standard expense per unit x (405,000 standard units - 403,750 actual units) = $2,500 favorable
Identify the situation listed below that will certainly result in a favorable variance.Actual revenue is lower than budgeted revenue.Actual revenue is lower than intended revenue.Actual expenses are better than budgeted prices.Actual revenue is greater than budgeted revenue. Actual expenses are better than budgeted prices.
Investment facility managers are commonly evaluated making use of performance measuresbased upon assets just.that combine revenue and assets. that combine earnings and also resources.that incorporate assets and funding.based on earnings only.
Expenses that are not conveniently linked through a particular department, and which are incurred for the joint benefit of even more than one department, are:Fixed expenses.Uncontrolled expenses.Direct prices.Instraight expenses. Variable costs.
The distinction in between a profit facility and also an investment facility isTright here is no difference; investment center and also profit facility are identified.An investment center incurs no expenses however does geneprice earnings.An investment facility incurs prices, however does not directly geneprice profits.An investment facility offers solutions to profit centers.An investment facility is responsible for investments made in operating assets.
A responsibility bookkeeping performance report displays:Only actual expenses.Only budgeted expenses.Only indirect expenses.Both actual costs and also budgeted costs.Only straight costs.
Costs that the manager has the power to identify or at leastern significantly affect are called:Direct costs.Instraight prices.Joint costs.Uncontrolled prices.Controllable costs.
A unit of a company that generates revenues and incurs prices is called a:Cost center.Profit center. Performance center.Expense center.Responsibility facility.
The salaries of employees that spfinish all their time functioning in one department are:Variable prices.Instraight prices.Responsibility expenses.Direct expenses. Unavoidable costs.
A department that incurs expenses without directly generating profits is a:Cost facility. Service facility.Profit center.Production center.Performance center.
The type of department that geneprices revenues and also incurs expenses, and its manager is responsible for the investments made in operating assets is referred to as a(n):Responsibility centerCost centerInvestment centerProfit centerService department
An bookkeeping mechanism that is put up to control expenses and evaluate managers" performance by assigning costs to the supervisors responsible for managing them is referred to as a(n):Activity-based accountancy mechanism.Cost accounting mechanism.Responsibility accounting system. Managerial audit mechanism.Financial accountancy mechanism.
Expenses that are conveniently traced and also assigned to a specific department because they are incurred for the sole benefit of that department are called:Fixed prices.Instraight prices.Unmanageable prices.Direct prices. Controllable expenses.
A cost facility is a unit of a organization that incurs expenses without directly generating earnings. All of the following are taken into consideration cost centers except:Purchasing department at Best Buy.Advertising department at Hertz.Juice department at Coca Cola. Accounting department at Warner Bros.Research department at Microsoft.
Plans that recognize expenses and also expenses under each manager"s manage before the reporting duration, frequently based on the versatile budget approach, are called:Responsibility accounting devices.Responsibility accounting budgets. Cost audit units.Activity-based audit devices.Managerial accounting systems.
An audit mechanism that accumulates and also reports costs incurred by each business department for administration to evaluate the performance of a department is a:Departpsychological accounting mechanism. Cost bookkeeping mechanism.Revenue accounting system.Service accounting mechanism.Standard audit device.
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Costs that the manager does not have actually the power to identify or at leastern significantly impact are:Direct costs.Indirect expenses.Unmanageable prices. Joint prices.Variable prices.
Fundamental Financial Accounting Concepts10th EditionDanita Kelley, Gaile Moe, Gordon M Wardlaw, Jacqueline Berning
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