Controlling Week 2
Which of the following is true of a budget?
Budgets help managers to revise their plans and strategies.
Budgets are used to express only the operational plans and not the strategic plans of a company.
Budgets are most useful when they are planned independent of the company's strategic plans.
Budgets do not account for nonfinancial aspects of the upcoming period.
What is the static-budget variance of variable costs?
$116,000 unfavorable
$103.000 favorable
$103.000 unfavorable
$116,000 favorable
The variable overhead flexible-budget variance can be further explained by calculating the:
Sales-volume variance and the spending variance
Price variance and the efficiency variance
Static-budget variance and sales-volume variance
Spending variance and the efficiency variance
On the 2019 budgeted income statement, what amount will be reported for sales?
$241,500
$231,000
$252,000
$220,500
If a sales-volume variance was caused by poor-quality products, then the ___ would be in the best position to explain the variance.
Production manager
Financial supervisor
Logistic manager
Sales supervisor
Budgets should ___
Only be developed for short periods of time such as quarters
Be administered rigidly
Not be so rigid that if conditions change, adjustments in spending can be made
Include only variable costs
Which of the following is a reason why top managers want lower-level managers to participate in the budgeting process?
To ensure that the budgets are administered rigidly given the changing market conditions.
To reduce the time and cost expended in the budgeting process.
To benefit from their experience with the day-to-day aspects of running the business.
To ensure that they do not introduce any budgetary slack
Which of the following is true of master budgets?
They aid in quantifying the expectations of all stakeholders.
They must be administered rigidly after they are committed to.
Includes both financial and nonfinancial aspects of management's plans.
They include only financial aspects of a plan and exclude nonfinancial aspects.
Which of the following is not true of a properly executed budgetary cycle?
Past performance and market feedback are considered in setting budget amounts
Deviations from plan are only investigated at the conclusion of the fiscal year as actual data can be finally compiled
Specific financial and nonfinancial expectations are set
During the fiscal year, managers investigate deviations from plans
The sales-volume variance is sometimes due to ___
Unexpected increase in the use of quantities of inputs of raw material
The difference between selling price and budgeted selling price
Quality problems leading to customer dissatisfaction
Unexpected increase in manufacturing labor time
Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance?
Actual costs incurred - fixed overhead allocated for actual output
Budgeted fixed overhead - fixed overhead allocated for actual output
Flexible-budget amount - actual costs incurred
Static-budget amount - flexible-budget amount
Johnson Company had planned for operating income of $10 million in the master budget with a contribution margin of $3 million, but actually achieved operating income of only $7 million and a contribution margin of $2.5 million.
The static-budget variance for operating income is $3 million favorable.
The flexible-budget variance for operating income is $3 million favorable.
The static-budget variance for operating income is $3 million unfavorable.
The flexible-budget variance for operating income is $3 million unfavorable.
An efficiency variance reflects the difference between ___
Actual input quantities used last period and current period
A standard input quantity in a company and its main competitors
An actual input quantity used in a company and its main competitors
An actual input quantity and a budgeted input quantity
{"name":"Controlling Week 2", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Which of the following is true of a budget?, What is the static-budget variance of variable costs?, The variable overhead flexible-budget variance can be further explained by calculating the:","img":"https://www.quiz-maker.com/3012/CDN/95-4656346/img-0505.jpeg?sz=1200"}
More Quizzes
This is so random...
15830
Pediatric(51-100)
502545
Python Game
7418
Trivia Challenge (12)
20100
Harry Potter: Casas de Hogwarts examen
10521
Which member of Super Sparkle are you?
8422
EMOT PHYSICS QUIZ.
15829
LFCM quiz (by Nikosiodem)
301559
Pure Fire
10513
Bài 2 QSC
30150
Anonymous Poll - Health & Vitality Workshop
4217
What type of chair are you?
9413