managerial accounting feb 2016 (1)
DESCRIPTION
FINTRANSCRIPT
Chapter 081. The production budget is typically prepared prior to the sales budget.FALSE2. One benefit of budgeting is that it coordinates the activities of the entire organization.TRUE3. Both planning and control are needed for an effective budgeting system.TRUE4. One difficulty with self-imposed budgets is that they are not subject to any type of review.FALSE5. The master budget is a network consisting of many separate budgets that are interdependent.TRUE6. Planning and control are essentially the same thing.FALSE7. Sales forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known.FALSE8. A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units ofproduct.TRUE9. Both variable and fixed manufacturing overhead costs are included in the manufacturing overhead budget.TRUE10. In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling andadministrative expenses to determine the expected cash disbursements for selling and administrative expenses.FALSE
chapter 9
1. The materials price variance is computed by multiplying the difference between the actual price and the standard price by the actualquantity of
materials used in production.FALSE\
2. In general, the purchasing agent is responsible for the materials price variance.TRUE
3. A materials price variance is favorable if the actual price exceeds the standard price.FALSE
4. Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.TRUE
5. When more hours of labor time are necessary to complete a job than the standard allows, the labor rate variance is unfavorable.FALSE
6. Standard costs should generally be based on the actual costs of prior periods.FALSE
7. The standard quantity per unit for direct materials should not include an allowance for waste.FALSE
8. Ideal standards should be used for forecasting and planning.FALSE
9. The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.TRUE
10. Standard costs greatly increase the complexity of the bookkeeping process.FALSE11. When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yieldsa(n):A.combined price and quantity variance.B.efficiency variance.