Question

1. Which of the following refers to quantitative plans for the future, stated in either physical terms or financial terms or both?

a.An income statement

b.A balance sheet

c.A budget

2. The budgeted income statement is a component of the:

a.investing budget.

b.operating budget.

c.overhead budget.

d.cash budget.

d.A statement of owner's equity

3. What is the formula used to compute the units to be produced?

a.Units produced = Units sold + Units in beginning inventory + Units in ending inventory

b.Units produced = Units sold

c.Units produced = Units sold + Units in beginning inventory − Units in ending inventory

d.Units Produced = Units sold − Units in beginning inventory + Units in ending inventory

4. Which of the following budgets provides budgeted costs for actual level of activity?

a.An efficiency budget

b.A cash budget

c.A flexible budget

d.An incremental budget

5. Activity-based budgets

a.work in environments where the products are homogeneous and the production process is simple.

b.start with output and then determine the resources necessary to create that output.

c.use the knowledge of cost behavior to split the functional-based line items into fixed and variable components.

d.rely on the use of functional-based line items.

6.

Which is NOT one of the four steps needed to build an activity-based budget?

a.Estimate the committed capacity.

b.Determine output level.

c.Determine the activities and their drivers needed to produce output.

d.Estimate the demand for each activity to produce the output.

Answer 1