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  3. Strayer ACC 556 Chapter 21 Quiz

Contents

  • 1 Strayer ACC 556 Chapter 21 Quiz
    • 1.1 Question 1
    • 1.2 Question 2
    • 1.3 Question 3
    • 1.4 Question 4
    • 1.5 Question 5
    • 1.6 Question 6
    • 1.7 Question 7
    • 1.8 Question 8
    • 1.9 Question 9
    • 1.10 Question 10
  • 2 STATUS
    • 2.1 Question 11
    • 2.2 Question 12
    • 2.3 Question 13
    • 2.4 Question 14
    • 2.5 Question 15
    • 2.6 Question 16
    • 2.7 Question 17
    • 2.8 Question 18
    • 2.9 Question 19
    • 2.10 Question 20

Strayer ACC 556 Chapter 21 Quiz

Question 1

A benefit of budgeting is that it provides definite objectives for evaluating performance.

Question 2

Effective budgeting requires clearly defined lines of authority and responsibility.

Question 3

Financial budgets must be completed before the operating budgets can be prepared.

Question 4

The budgeted income statement indicates the expected profitability of operations for the next year

Question 5

The budget itself and the administration of the budget are entirely accounting responsibilities

Question 6

Why are budgets useful in the planning process?

Question 7

Which of the following statements about budget acceptance in an organization is true?

Question 8

The budget committee would not normally include the

Question 9

Which of the following is not an operating budget?

Question 10

The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired to end finished goods units, respectively?

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Question 11

A company budgeted unit sales of 204,000 units for January 2013 and 240,000 units for February 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month’s budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January 2013 in order for the company to meet its goals?

Question 12

The following information is taken from the production budget for the first quarter:

Beginning inventory in units 1,200
Sales budgeted for the quarter 456,000
Production capacity in units 472,000

How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

Question 13

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be

Question 14

The single most important output in preparing financial budgets is the

Question 15

What is the proper preparation sequencing of the following budgets?

1 – Budgeted Balance Sheet
2 – Sales Budget
3 – Selling and Administrative Budget
4 – Budgeted Income Statement

Question 16

The formula for determining budgeted merchandise purchases is budgeted

Question 17

Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities will prepare?

Question 18

The primary benefits of budgeting include all of the following except it

Question 19

The budget that is often considered to be the most important financial budget is the

Question 20

Match the items below by entering the appropriate code letter in the space provided.

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