Budgetary Process Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. The finance department in a company is a _____.

Question 2 2. In a bottom-up budgeting process, what will a company MOST likely request?

Question 3 3. The budgeted income statement would MOST likely be consulted to locate _____.

Question 4 4. What results from subtracting the sales and administrative expenses from gross margin?

Question 5 5. The production budget is MOST useful to examine before preparing the _____ budget.

Page 2

Question 6 6. To manufacture each unit, it takes 7 labor-hours and $12 in raw materials. The direct labor amount to make 10,000 units is $1,050,000. What is the hourly average rate for labor?

Question 7 7. The net present value of a machine purchase is $50,000. It will make $150,000 in product. How much does it cost?

Question 8 8. John is analyzing time value of money calculations. What will this method take into account?

Question 9 9. The operating and financial budgets are connected by a(n) _____ and a(n) _____.

Question 10 10. Company sales would fall under the _____ budget.

Page 3

Question 11 11. The sales budget is usually the _____ to be prepared by a business.

Question 12 12. What budget is MOST often developed from historical data?

Question 13 13. John is the operations manager of his office furniture company in charge of the manufacturing facility. Where is his salary MOST likely to be displayed?

Question 14 14. If John calculates overhead percentage, what is he MOST likely to learn about sales?

Question 15 15. Following gross profit margin on the budgeted income statement, what will one find?

Page 4

Question 16 16. The selling and administrative expense budget would include which of the following?

Question 17 17. Which of the following is NOT part of a master budget?

Question 18 18. John is working with his capital expenditure budget. What choice would fall under this budget?

Question 19 19. The materials cost to make 700 units of furniture is $2,825. One unit takes 2 panels of wood and one-tenth of a gallon of glue. You need to have one gallon of glue and 10 panels left over. Glue costs $10 per gallon. What are wood costs per panel?

Question 20 20. The numbers found in the direct materials budget are MOST useful to _____.

Page 5

Question 21 21. On a balance sheet, equity represents _____.

Question 22 22. Where is one MOST likely to find predicted assets, predicted liabilities, and predicted equity?

Question 23 23. The balance sheet most often uses the _____ information.

Question 24 24. What description BEST describes how depreciation shows on the master budget?

Question 25 25. What element is NOT part of a production budget?

Page 6

Question 26 26. The production budget gives the number of units produced and used which connects it MOST closely to the _____.

Question 27 27. How often do many companies come up with a sales budget?

Question 28 28. What is a production budget?

Question 29 29. What is net income?

Question 30 30. Carol was asked by her boss to develop a master budget for the company she works for, ''The Big Spoon.'' She doesn't know where to start with this project. Which budget would you suggest she start with, and why?

Budgetary Process Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 303: Cost Accounting  /  Business Courses
Support