GARRISON MANAGERIAL
ACCOUNTING 12TH EDITION 2026
FINAL PAPER PRACTICE
QUESTIONS ANSWERS ACCURATE
A+
◉ The system of accountability in which managers are held responsible
for those items of revenue and costs—and only those items—over which
they can exert significant control is referred to as ________.
Answer: responsibility accounting
◉ why do operating budgets generally span a period of one year?
Answer: Companies choose a span of one year to correspond to their
fiscal years.
◉ What is not a benefit of self-imposed budgets?
Answer: Lower-level managers are encouraged to create budgetary slack
since they are more knowledgeable of day-to-day operations.
◉ What is true of self-imposed (participative) budgets?
Answer: Self-imposed budgets give managers at all levels of an
organization an opportunity to provide input into the budgeting process.
◉ The budgeting process begins with the preparation of the ______
budget.
, Answer: sales
◉ For a production budget, the ______ is the beginning inventory for
the year.
Answer: beginning inventory for the first quarter
◉ What is a major factor that should be taken into consideration while
planning the desired level of inventories?
Answer: Costs of carrying inventory.
◉ Vineyard Corporation, a manufacturer of fine wines, began the year
with 20,000 bottles in inventory. The company estimated the budgeted
sales for the four quarters of the current year to be 200,000 bottles,
150,000 bottles, 250,000 bottles, and 400,000 bottles, respectively. The
management feels that an ending inventory of 10% of the subsequent
quarter's sales is appropriate. What are the production needs for the first
quarter?
Answer: 195,000 bottles
◉ Vineyard Corporation, a manufacturer of fine wines, began the year
with 20,000 bottles in inventory. The company estimated the budgeted
sales for the four quarters of the current year to be 200,000 bottles,
150,000 bottles, 250,000 bottles, and 400,000 bottles, respectively. The
management feels that an ending inventory of 10% of the subsequent
quarter's sales is appropriate. What is the desired ending inventory for
the second quarter?
Answer: 25,000 bottles
ACCOUNTING 12TH EDITION 2026
FINAL PAPER PRACTICE
QUESTIONS ANSWERS ACCURATE
A+
◉ The system of accountability in which managers are held responsible
for those items of revenue and costs—and only those items—over which
they can exert significant control is referred to as ________.
Answer: responsibility accounting
◉ why do operating budgets generally span a period of one year?
Answer: Companies choose a span of one year to correspond to their
fiscal years.
◉ What is not a benefit of self-imposed budgets?
Answer: Lower-level managers are encouraged to create budgetary slack
since they are more knowledgeable of day-to-day operations.
◉ What is true of self-imposed (participative) budgets?
Answer: Self-imposed budgets give managers at all levels of an
organization an opportunity to provide input into the budgeting process.
◉ The budgeting process begins with the preparation of the ______
budget.
, Answer: sales
◉ For a production budget, the ______ is the beginning inventory for
the year.
Answer: beginning inventory for the first quarter
◉ What is a major factor that should be taken into consideration while
planning the desired level of inventories?
Answer: Costs of carrying inventory.
◉ Vineyard Corporation, a manufacturer of fine wines, began the year
with 20,000 bottles in inventory. The company estimated the budgeted
sales for the four quarters of the current year to be 200,000 bottles,
150,000 bottles, 250,000 bottles, and 400,000 bottles, respectively. The
management feels that an ending inventory of 10% of the subsequent
quarter's sales is appropriate. What are the production needs for the first
quarter?
Answer: 195,000 bottles
◉ Vineyard Corporation, a manufacturer of fine wines, began the year
with 20,000 bottles in inventory. The company estimated the budgeted
sales for the four quarters of the current year to be 200,000 bottles,
150,000 bottles, 250,000 bottles, and 400,000 bottles, respectively. The
management feels that an ending inventory of 10% of the subsequent
quarter's sales is appropriate. What is the desired ending inventory for
the second quarter?
Answer: 25,000 bottles
