Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Date Taken:
Time Spent:
Points Received:
Question Type:
Multiple Choice
30 / 30 (100%)
# Of Questions:
10
# Correct:
10
Grade Details
1. Question :
Student Answer:
(TCO 2) Operating budgets and financial budgets
have nothing to do with the master budget.
are prepared after the master budget.
combined, form the master budget.
Instructor
Explanation:
Points Received:
are prepared before the master budget.
Chapter 6, Page 182
3 of 3
Comments:
2. Question :
Student Answer:
(TCO 2) To gain the benefits of budgeting, ________ must
understand and support the budget.
customers
management at all levels
suppliers
Instructor
Explanation:
Points Received:
All of the above
Chapter 6, Page 184
3 of 3
Comments:
3. Question :
Student Answer:
(TCO 2) Which budget is not necessary to prepare the budgeted
balance sheet?
Revenues budget
Budgeted income statement
Cash budget
Instructor
Explanation:
Budgeted statement of cash flows
Chapter 6, Page 187
Points Received:
3 of 3
Comments:
4. Question :
Student Answer:
(TCO 2) A feature of a standard-costing system is that the costs
of every product or service planned to be worked on during the
period can be computed at the start of that period. This feature
of standard costing makes it possible to
maintain actual costs as an integral part of the costing
system.
use a simple recording system.
eliminate routine reports.
Instructor
Explanation:
Points Received:
justify eliminating the budgeting process.
Chapter 7, Page 232
3 of 3
Comments:
5. Question :
Student Answer:
(TCO 2) An unfavorable variance indicates that
actual costs are less than budgeted costs.
actual revenues exceed budgeted revenues.
the actual amount decreased operating income relative to
the budgeted amount.
Instructor
Explanation:
Points Received:
All of the above
Chapter 7, Page 227
3 of 3
Comments:
6. Question :
Student Answer:
(TCO 2) Which of the following statements is true about
overhead cost variance analysis using activity-based costing?
Overhead cost variances are calculated for output-unit level
costs only.
Overhead cost variances are calculated for variable
manufacturing overhead costs only.
A four-variance analysis can be conducted.
Instructor
Explanation:
Points Received:
Activity-based costing uses input measures for all activities,
resulting in the inability to do flexible budgets needed for
variance analysis.
Chapter 8, Page 275
3 of 3
Comments:
7. Question :
Student Answer:
(TCO 2) Overhead costs have been increasing due to all of the
following except
product proliferation.
tracing more costs as direct costs with the help of
technology.
more complexity in distribution processes.
Instructor
Explanation:
Points Received:
increased automation.
Chapter 8, Pages 261-262
3 of 3
Comments:
8. Question :
Student Answer:
(TCO 2) Katie Enterprises reports the year-end information from
20X8 as follows: Sales (70,000 units) $560,000; Cost of goods
sold 210,000; Gross margin 350,000; Operating expenses
200,000; Operating income $150,000. Katie is developing the
20X9 budget. In 20X9, the company would like to increase
selling prices by 4%, and as a result expects a decrease in sales
volume of 10%. All other operating expenses are expected to
remain constant. Assume that COGS is a variable cost and that
operating expenses are a fixed cost. What is budgeted sales for
20X9?
$582,400
$524,160
$504,000
Instructor
Explanation:
$560,000
Sale price ($560,000 / 70,000) X 1.04 = $8.32 new price per unit
70,000 x (1- .10) = 63,000 units to be sold
Sales $8.32 x 63,000 = $524,160
Points Received:
3 of 3
Comments:
9. Question :
(TCO 2) Hester Company budgets on an annual basis for its
fiscal year. The following beginning and ending inventory levels
(in units) are planned for the fiscal year of July 1, 2008, through
June 30, 2009.
July 1, 2008
2009
Raw material (note)
40,000
June 30,
10,000
Work in process
8,000
8,000
Finished goods
30,000
5,000
(note) Three units of raw material are needed to produce each
unit of finished product.
If Hester Company plans to sell 600,000 units during the 20082009 fiscal year, the number of units it would have to
manufacture during the year would be
Student Answer:
625,000.
575,000.
540,000.
640,000.
600,000 + 5,000 finished goods ending inventory - 30,000 finished goods beginning
inventory = 575,000
Instructor
Explanation:
Points Received:
3 of 3
Comments:
10. Question :
(TCO 2) Information pertaining to Brenton Corporation's sales
revenue is presented in the following table:
February
March
April
Cash Sales
$120,000
Credit Sales
280,000
Total Sales
$400,000
$160,000
$150,000
300,000
400,000
$460,000
$550,000
Management estimates that 5% of credit sales are not
collectible. Of the credit sales that are collectible, 60% are
collected in the month of sale and the remainder in the month
following the sale. Cost of purchases of inventory each
month are 70% of the next month's projected total sales. ll
purchases of inventory are on account; 25% are paid in the
month of purchase, and the remainder is paid in the month
following the purchase.
Brenton's budgeted total cash payments in March for inventory
purchases are
Student Answer:
$385,000.
$358,750.
$306,250.
Instructor
$280,000.
($400,000 X 70% X 25%) + ($550,000 X 70% X 75%) = $358,750
Explanation:
Points Received:
Comments:
3 of 3