ACCT 526 STUDY GUIDE 2026 VERIFIED
QUESTIONS AND ANSWERS OUTLINE PACK
◉ a budget that shows the expected production cost of the units
budgeted to be sold during the period.
Answer: COGS budget
◉ the budget showing the expected number of direct labor hours to
be worked and the total cost of direct labor for the budget period.
Answer: direct labor budget
◉ a budget that shows the amount and cost of every type of raw
material to be purchased in each time period.
Answer: direct materials purchases budget
◉ individual behavior that is in basic conflict with the goals of the
organization.
Answer: dysfunctional behavior
◉ budget that shows the cost of units budgeted to be in ending
finished good inventory.
Answer: ending finished goods inventory budget
,◉ budgets that detail the inflows and outflows of cash and the
overall financial position of the firm.
Answer: financial budgets
◉ budget that shows expected costs for a particular activity level. A
before-the-fact flexible budget gives expected costs for a range of
activity levels. An after-the-fact flexible budget gives expected costs
for the actual level of activity.
Answer: flexible (variable) budgets
◉ the difference between the budgeted costs and actual costs for the
chosen level of activity.
Answer: flexible budget variance
◉ the alignment of managerial and organizational goals.
Answer: goal congruence
◉ monetary rewards used to control a manager's tendency to shirk
and waste resources by tying budgetary performance to salary
increases, bonuses, and promotions.
Answer: monetary incentives
, ◉ when a manager takes actions that improve budgetary
performance in the short run but bring long-run harm to the firm.
Answer: myopic behavior
◉ rewards that include job enrichment, increased responsibility and
autonomy, and recognition programs.
Answer: non-monetary incentives
◉ budgets that describe the income-generating activities of a firm,
sales, production, and finished goods inventories, ending with the
budgeted income statement.
Answer: operating budgets
◉ a budget that shows the expected cost of all production costs
other than direct materials and direct labor.
Answer: overhead budget
◉ type of budgeting that allows subordinate managers considerable
say in how the budgets are established.
Answer: participative budget
◉ a form that compares actual costs with budgeted costs.
Answer: performance report
QUESTIONS AND ANSWERS OUTLINE PACK
◉ a budget that shows the expected production cost of the units
budgeted to be sold during the period.
Answer: COGS budget
◉ the budget showing the expected number of direct labor hours to
be worked and the total cost of direct labor for the budget period.
Answer: direct labor budget
◉ a budget that shows the amount and cost of every type of raw
material to be purchased in each time period.
Answer: direct materials purchases budget
◉ individual behavior that is in basic conflict with the goals of the
organization.
Answer: dysfunctional behavior
◉ budget that shows the cost of units budgeted to be in ending
finished good inventory.
Answer: ending finished goods inventory budget
,◉ budgets that detail the inflows and outflows of cash and the
overall financial position of the firm.
Answer: financial budgets
◉ budget that shows expected costs for a particular activity level. A
before-the-fact flexible budget gives expected costs for a range of
activity levels. An after-the-fact flexible budget gives expected costs
for the actual level of activity.
Answer: flexible (variable) budgets
◉ the difference between the budgeted costs and actual costs for the
chosen level of activity.
Answer: flexible budget variance
◉ the alignment of managerial and organizational goals.
Answer: goal congruence
◉ monetary rewards used to control a manager's tendency to shirk
and waste resources by tying budgetary performance to salary
increases, bonuses, and promotions.
Answer: monetary incentives
, ◉ when a manager takes actions that improve budgetary
performance in the short run but bring long-run harm to the firm.
Answer: myopic behavior
◉ rewards that include job enrichment, increased responsibility and
autonomy, and recognition programs.
Answer: non-monetary incentives
◉ budgets that describe the income-generating activities of a firm,
sales, production, and finished goods inventories, ending with the
budgeted income statement.
Answer: operating budgets
◉ a budget that shows the expected cost of all production costs
other than direct materials and direct labor.
Answer: overhead budget
◉ type of budgeting that allows subordinate managers considerable
say in how the budgets are established.
Answer: participative budget
◉ a form that compares actual costs with budgeted costs.
Answer: performance report
