acc paper
ACC 307: Cost Accounting
Fall 2012
Practice Exam II
I. TRUE / FALSE
1. A budget generally includes both financial and nonfinancial aspects of the plan.
2. The revenues budget should be based on the production budget.
3. A favorable variance should be ignored by management.
4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job.
5. For fixed overhead costs, the flexible-budget amount is always the same as the static-budget amount.
II. MULTIPLE CHOICE
6. The plans of management are expressed formally in:
A. the annual report to shareholders.
B. Form 10-K submitted to the Securities and Exchange Commission.
C. performance reports.
D. budgets.
7. A budget can help implement:
A. strategic planning.
B. long-run planning.
C. short-run planning.
D. All of these answers are correct.
8. Operating budgets and financial budgets:
A. combined form the master budget.
B. are prepared before the master budget.
C. are prepared after the master budget.
D. have nothing to do with the master budget.
9. In which order are the following developed? First to last: A = Production budget B = Direct materials costs budget C = Budgeted income statement D = Revenues budget
A. ABDC
B. DABC
C. DCAB
D. CABD
10. The materials purchase budget:
A. is the beginning point in the budget process.
B. must provide for desired ending inventory as well as for production.
C. is accompanied by a schedule of cash collections.
D. is completed after the cash budget.
11. The cash budget must be prepared before you can complete the:
A. production budget.
B. budgeted balance sheet.
C. raw materials purchases budget.
D. schedule of cash disbursements.
12. End-of-period figures for accounts receivable and payables to suppliers would be found on the:
A. cash budget.
B. budgeted schedule of cost of goods manufactured.
C. budgeted
Fall 2012
Practice Exam II
I. TRUE / FALSE
1. A budget generally includes both financial and nonfinancial aspects of the plan.
2. The revenues budget should be based on the production budget.
3. A favorable variance should be ignored by management.
4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job.
5. For fixed overhead costs, the flexible-budget amount is always the same as the static-budget amount.
II. MULTIPLE CHOICE
6. The plans of management are expressed formally in:
A. the annual report to shareholders.
B. Form 10-K submitted to the Securities and Exchange Commission.
C. performance reports.
D. budgets.
7. A budget can help implement:
A. strategic planning.
B. long-run planning.
C. short-run planning.
D. All of these answers are correct.
8. Operating budgets and financial budgets:
A. combined form the master budget.
B. are prepared before the master budget.
C. are prepared after the master budget.
D. have nothing to do with the master budget.
9. In which order are the following developed? First to last: A = Production budget B = Direct materials costs budget C = Budgeted income statement D = Revenues budget
A. ABDC
B. DABC
C. DCAB
D. CABD
10. The materials purchase budget:
A. is the beginning point in the budget process.
B. must provide for desired ending inventory as well as for production.
C. is accompanied by a schedule of cash collections.
D. is completed after the cash budget.
11. The cash budget must be prepared before you can complete the:
A. production budget.
B. budgeted balance sheet.
C. raw materials purchases budget.
D. schedule of cash disbursements.
12. End-of-period figures for accounts receivable and payables to suppliers would be found on the:
A. cash budget.
B. budgeted schedule of cost of goods manufactured.
C. budgeted