D196 - OA Prep - Practice questions
B. Selling and Administrative Expense Budget - answers✔✔What budget includes corporate office
expenses?
A. Manufacturing Budget
B. Selling and Administrative Expense Budget
B. Period Cost - answers✔✔Insurance policy on office building
A. Product Cost
B. Period Cost
B. Capital Budget - answers✔✔What budget is used for large corporate purchases?
A. Sales Budget
B. Capital Budget
B. Budgeting Balance Sheet - answers✔✔What budget is usually the last budget prepared?
A. Budgeted Income Statement
B. Budgeting Balance Sheet
A. Sales Budget - answers✔✔What budget is the first budget prepared?
A. Sales Budget
B. Production Budget
,B. Direct Materials Budget - answers✔✔What budget includes information on the cost of materials?
A. Finished Goods Budget
B. Direct Materials Budget
A. Manufacturing Budget - answers✔✔What budget includes information on the depreciation of factory
equipment?
A. Manufacturing Budget
B. Selling and Administrative Budget
B. Finished Goods Budget - answers✔✔What budget helps with inventory control?
A. Production Budget
B. Finished Goods Budget
A. Sales Budget - answers✔✔What budget shows revenues?
A. Sales Budget
B. Selling and Administrative Budget
B. Direct Labor Budget - answers✔✔What budget uses the rate of pay for assembly line workers?
A. Direct Material Budget
B. Direct Labor Budget
B. A difference between the actual cost and the budgeted cost where the actual cost is more than the
budgeted amount. - answers✔✔What is an unfavorable cost variance?
, A. A difference between the actual cost and the budgeted cost where the actual cost is less than the
budgeted amount.
B. A difference between the actual cost and the budgeted cost where the actual cost is more than the
budgeted amount.
B. Costs that are specifically traceable to a unit of business or segment being analyzed. -
answers✔✔What is a direct cost?
A. Costs normally incurred for the benefit of several segments within the organization; sometimes called
common costs or joint costs.
B. Costs that are specifically traceable to a unit of business or segment being analyzed.
A. An organizational unit in which a manager has control over and is held accountable for cost
performance. - answers✔✔What is a cost center?
A. An organizational unit in which a manager has control over and is held accountable for cost
performance.
B. An organizational unit in which a manager has control over and is held accountable for both cost and
revenue performance.
B. Costs over which a manager does not have direct authority and cannot change. - answers✔✔What is
an uncontrollable cost?
A. Costs that are specifically traceable to a unit of business or segment being analyzed.
B. Costs over which a manager does not have direct authority and cannot change.
B. An organization in which managers at all levels have the authority to make decisions concerning the
operations for which they are responsible. This is often based on geographical location. -
answers✔✔What is a decentralized organization?
A. An organizational unit in which a manager has control over and is held accountable for cost
performance.
B. Selling and Administrative Expense Budget - answers✔✔What budget includes corporate office
expenses?
A. Manufacturing Budget
B. Selling and Administrative Expense Budget
B. Period Cost - answers✔✔Insurance policy on office building
A. Product Cost
B. Period Cost
B. Capital Budget - answers✔✔What budget is used for large corporate purchases?
A. Sales Budget
B. Capital Budget
B. Budgeting Balance Sheet - answers✔✔What budget is usually the last budget prepared?
A. Budgeted Income Statement
B. Budgeting Balance Sheet
A. Sales Budget - answers✔✔What budget is the first budget prepared?
A. Sales Budget
B. Production Budget
,B. Direct Materials Budget - answers✔✔What budget includes information on the cost of materials?
A. Finished Goods Budget
B. Direct Materials Budget
A. Manufacturing Budget - answers✔✔What budget includes information on the depreciation of factory
equipment?
A. Manufacturing Budget
B. Selling and Administrative Budget
B. Finished Goods Budget - answers✔✔What budget helps with inventory control?
A. Production Budget
B. Finished Goods Budget
A. Sales Budget - answers✔✔What budget shows revenues?
A. Sales Budget
B. Selling and Administrative Budget
B. Direct Labor Budget - answers✔✔What budget uses the rate of pay for assembly line workers?
A. Direct Material Budget
B. Direct Labor Budget
B. A difference between the actual cost and the budgeted cost where the actual cost is more than the
budgeted amount. - answers✔✔What is an unfavorable cost variance?
, A. A difference between the actual cost and the budgeted cost where the actual cost is less than the
budgeted amount.
B. A difference between the actual cost and the budgeted cost where the actual cost is more than the
budgeted amount.
B. Costs that are specifically traceable to a unit of business or segment being analyzed. -
answers✔✔What is a direct cost?
A. Costs normally incurred for the benefit of several segments within the organization; sometimes called
common costs or joint costs.
B. Costs that are specifically traceable to a unit of business or segment being analyzed.
A. An organizational unit in which a manager has control over and is held accountable for cost
performance. - answers✔✔What is a cost center?
A. An organizational unit in which a manager has control over and is held accountable for cost
performance.
B. An organizational unit in which a manager has control over and is held accountable for both cost and
revenue performance.
B. Costs over which a manager does not have direct authority and cannot change. - answers✔✔What is
an uncontrollable cost?
A. Costs that are specifically traceable to a unit of business or segment being analyzed.
B. Costs over which a manager does not have direct authority and cannot change.
B. An organization in which managers at all levels have the authority to make decisions concerning the
operations for which they are responsible. This is often based on geographical location. -
answers✔✔What is a decentralized organization?
A. An organizational unit in which a manager has control over and is held accountable for cost
performance.
