Top Mark Questions and Correct Verified Answers
ACC 312 Exam 3-Questions and Correct
Verified Answers
budget
✓ a detailed quantitative plan for acquiring and using financial and other resources
over a specified forthcoming time period
fiscal year
✓ A fiscal period consisting of 12 consecutive months
operating budgets
✓ ordinarily cover a one-year period corresponding to a company's fiscal year; many
companies divide their annual budget into four quarters
In a manufacturing company, the budgets for manufacturing costs, including the direct
materials budget, the direct labor budget, and the manufacturing overhead budget are all
based on the...
✓ production budget
More accurate estimates are generally the result of having profit targets set by...
✓ lower-level managers
budgetary slack
✓ When a manager creates a budget that is too easy to attain
In a manufacturing company, which budget is used as the basis for creating the direct
materials budget, the direct labor budget, and the manufacturing overhead budget?
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ Production
Because it is needed for the schedule of expected cash collections, and the cash budget the
annual master budget file generally starts with the beginning...
✓ balance sheet
Which is NOT included on the sales budget?
✓ Desired ending inventory of units
Advantages of self-imposed budgets
✓ 1. It shows respect for their opinions when lower-level managers are involved in the
budgeting process.
✓
✓ 2. Budget estimates prepared by front-line managers are often more accurate than
estimates prepared by top managers.
✓
✓ 3. Motivation is generally higher when individuals participate insetting their own
goals than when the goals are imposed from above.
✓
✓ 4. It empowers them to take ownership of the budget and to be accountable for
deviations from it.
In a manufacturing company, what shows the number of units that must be manufactured
to satisfy sales needs and provide for the desired ending inventory?
✓ production budget
A company can repay outstanding principal and interest when...
✓ the cash excess is greater than the minimum required cash balance
Borrowing money is required whenever...
Top Mark !!!
22
ACC 312 Exam 3-Questions and Correct
Verified Answers
budget
✓ a detailed quantitative plan for acquiring and using financial and other resources
over a specified forthcoming time period
fiscal year
✓ A fiscal period consisting of 12 consecutive months
operating budgets
✓ ordinarily cover a one-year period corresponding to a company's fiscal year; many
companies divide their annual budget into four quarters
In a manufacturing company, the budgets for manufacturing costs, including the direct
materials budget, the direct labor budget, and the manufacturing overhead budget are all
based on the...
✓ production budget
More accurate estimates are generally the result of having profit targets set by...
✓ lower-level managers
budgetary slack
✓ When a manager creates a budget that is too easy to attain
In a manufacturing company, which budget is used as the basis for creating the direct
materials budget, the direct labor budget, and the manufacturing overhead budget?
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ Production
Because it is needed for the schedule of expected cash collections, and the cash budget the
annual master budget file generally starts with the beginning...
✓ balance sheet
Which is NOT included on the sales budget?
✓ Desired ending inventory of units
Advantages of self-imposed budgets
✓ 1. It shows respect for their opinions when lower-level managers are involved in the
budgeting process.
✓
✓ 2. Budget estimates prepared by front-line managers are often more accurate than
estimates prepared by top managers.
✓
✓ 3. Motivation is generally higher when individuals participate insetting their own
goals than when the goals are imposed from above.
✓
✓ 4. It empowers them to take ownership of the budget and to be accountable for
deviations from it.
In a manufacturing company, what shows the number of units that must be manufactured
to satisfy sales needs and provide for the desired ending inventory?
✓ production budget
A company can repay outstanding principal and interest when...
✓ the cash excess is greater than the minimum required cash balance
Borrowing money is required whenever...
Top Mark !!!
22
