ACCY130 - Final Test || A+ GUARANTEED!!
Why should you prepare a budget? correct answers - Essential for efficient operations and
organisational survival
- Provide means of operationalising the organisation's strategic plan
- Create a framework to understand the interconnectivity of various activities
- Provide an early warning when resource constraints may need to be enforced
- Provide a basis of evaluating future performance
What is a Master Budget? correct answers A comprehensive set of budgets that provide
coverage of an organisation's activities.
(Includes sales, product, various costs, cash, and budgeted income statement budgets)
What is the difference between Operating and Financial Budgets? correct answers
Operational budgets cover the actual manufacturing/merchandising process directly related to
the core operations of the organisation.
Financial budgets budget for the actual total financial statements.
Should there be a lot of Cash on Hand? correct answers Cash is not the most productive asset,
instead it could be invested and put into more productive uses where there may be cash
shortages within the company.
What is a Budget Variance? And why does it need to be investigated? correct answers A
budget variance is the difference between actual performance and budgeted performance.
Managers need to understand why the variances occurred so they can get control back.
Total Sales Revenue Equation correct answers Expected sales in Unit x Selling Price
Required Production (UNITS) Equation correct answers Expected Sales (units) + Closing
Inventory - Opening Inventory
Cost of Material Required for Production Equation correct answers Units to be Produced x
Material Cost per Unit
Total Materials Required Equation correct answers Cost of Materials Required for Production
+ Closing Inventory
Total Hours Required Equation correct answers Units to be Produced x Labour Time per Unit
What are the Fundamental Principles of Ethics? correct answers - Integrity
- Objectivity
- Professional Competence and Due Care
- Confidentiality
- Professional Behaviour
What are some risks of AI correct answers - Control
- Compliance
- Ethics
- Performance
Why should you prepare a budget? correct answers - Essential for efficient operations and
organisational survival
- Provide means of operationalising the organisation's strategic plan
- Create a framework to understand the interconnectivity of various activities
- Provide an early warning when resource constraints may need to be enforced
- Provide a basis of evaluating future performance
What is a Master Budget? correct answers A comprehensive set of budgets that provide
coverage of an organisation's activities.
(Includes sales, product, various costs, cash, and budgeted income statement budgets)
What is the difference between Operating and Financial Budgets? correct answers
Operational budgets cover the actual manufacturing/merchandising process directly related to
the core operations of the organisation.
Financial budgets budget for the actual total financial statements.
Should there be a lot of Cash on Hand? correct answers Cash is not the most productive asset,
instead it could be invested and put into more productive uses where there may be cash
shortages within the company.
What is a Budget Variance? And why does it need to be investigated? correct answers A
budget variance is the difference between actual performance and budgeted performance.
Managers need to understand why the variances occurred so they can get control back.
Total Sales Revenue Equation correct answers Expected sales in Unit x Selling Price
Required Production (UNITS) Equation correct answers Expected Sales (units) + Closing
Inventory - Opening Inventory
Cost of Material Required for Production Equation correct answers Units to be Produced x
Material Cost per Unit
Total Materials Required Equation correct answers Cost of Materials Required for Production
+ Closing Inventory
Total Hours Required Equation correct answers Units to be Produced x Labour Time per Unit
What are the Fundamental Principles of Ethics? correct answers - Integrity
- Objectivity
- Professional Competence and Due Care
- Confidentiality
- Professional Behaviour
What are some risks of AI correct answers - Control
- Compliance
- Ethics
- Performance
