ACT344 Cost Accounting: Week 6 Quiz (Version 1)

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ACCT344 Cost Accounting
Week 6 Quiz (Version 1)

1. (TCO 5) Which is NOT a component of the master budget?
Sales budget
Capital budget
Cost of goods sold budget
Budget to actual variance analysis

2. (TCO 5) The budgets that are comprehensive financial plans made up of various individual departmental and activity budgets are the (Points: 3)
Operating budgets
Master budgets
Financial budgets
Continuous budgets

3. (TCO 5) The budget committee (Points: 3)
Has the responsibility to review the budget
Resolves differences that may arise as the budget is prepared
Prepares financial statements for the auditor
Both A and B

4. (TCO 5) Which is a financial budget? (Points: 3)
administrative costs budget
capital expenditures budget
production budget
marketing costs budget

5. (TCO 5) When budgets are used for control, (Points: 3)
budgeted amounts from different years are compared.
actual amounts from different years are compared.
budgeted amounts are compared to actual amounts.
None of these is correct.

6. (TCO 5) Flexible budgets do NOT provide (Points: 3)
expected costs for a range of activity.
Budgeted costs for the actual level of activity.
budgeted costs for a predetermined level of activity.
expected costs for the actual performance level.

7. (TCO 5) Volume variances examine differences between (Points: 3)
the static budget and actual costs.
the flexible budget and the static budget.
the static budget and the rolling budget.
None of the above

8. (TCO 5) Goal congruence means (Points: 3)
there is alignment of organizational and managerial goals.
the organization is aligned to the needs of the environment.
the organization is aligned to shareholder goals.
there is no divergence between organizational and stockholder goals.

9. (TCO 5) Participative budgeting has which potential problem? (Points: 3)
Building slack into a budget
Encouraging individual behavior that is in basic conflict with the goals of the organization
Using budgets as a part of performance evaluations, which could lead to unethical behavior
Managers taking action that will improve performance in the short run but has long-term consequences

10. (TCO 5) Bored Manufacturing has projected the following:
Units to be produced 2,000
Direct materials 4 pounds at $5 $20
Direct labor 1 hour at $8 $8
Variable overhead 75% of direct labor
Fixed overhead 50% of direct labor

Which is the total amount of overhead included in the overhead budget? (Points : 3)
$12,000
$8,000
$30,000
$20,000
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