ACCT 212 Exam 3 with answers
Step |One |of |Budgeting |Process |- |verified |answersDevelop |budget |from |planned |objectives
Step |Two |of |Budgeting |Process |- |verified |answersCompare |actual |results |to |budgeted |amounts |and |
analyze |differences
Step |Three |in |Budget |Process |- |verified |answersTake |corrective |and |strategic |actions
Step |Four |in |Budget |Process |(Final) |- |verified |answersEstablish |new |objectives |and |a |new |budget
Potential |negative |outcome |of |budgeting |is |- |verified |answersEmployees |may |understate |sales |
budgets |and |overstate |expenses
Rolling |budget |is |updated |on |a |___ |basis |- |verified |answersQuarterly
What |are |the |components |of |a |master |budget? |- |verified |answersSales, |production, |direct |materials, |
direct |labor, |factory |overhead, |capital |expenditures, |cash, |selling |expenses |and |general |and |
administrative |expense |budgets
Sequence |for |a |master |budget |(4 |steps) |- |verified |answers1.Sales; |2.production; |3.DM, |DL, |and |
Factory |OH; |4.capital |expenditure, |cash, |selling, |and, |general |and |administrative |expenses
Selling |expense |budget |includes |- |verified |answersCommissions, |salary |of |the |sales |manager, |
advertising, |delivery |expenses, |and |marketing |expenses
General |and |administrative |budget |includes |- |verified |answersInsurance, |taxes, |and |depreciation |on |
non |manufacturing |assets
Beginning |cash |balance |plus |cash |receipts |minus |budgeted |cash |payments |- |verified |
answersPreliminary |cash |balance
Where |do |you |put |interest |expense? |- |verified |answersCash |budget
Ending |Retained |Earnings |- |verified |answersCurrent |year's |net |income |plus |previous |years |retained |
earnings |balance
Activity |based |budget |includes |- |verified |answersAuditing, |financial |reporting, |cost |accounting
Fixed |budget |- |verified |answersBased |on |a |single |predicted |amount |of |sales
Flexible |budget |- |verified |answersBased |on |several |different |amounts |of |sales
Management |by |exception |- |verified |answersInvestigating |and |taking |corrective |action |when |variances
|are |material |or |significantly |different |from |the |standard
Steps |to |preparing |a |standard |cost |performance |report |- |verified |answersCompute |and |analyze |
variances; |identify |questions |and |their |answers; |and |take |corrective |and |strategic |actions
Step |One |of |Budgeting |Process |- |verified |answersDevelop |budget |from |planned |objectives
Step |Two |of |Budgeting |Process |- |verified |answersCompare |actual |results |to |budgeted |amounts |and |
analyze |differences
Step |Three |in |Budget |Process |- |verified |answersTake |corrective |and |strategic |actions
Step |Four |in |Budget |Process |(Final) |- |verified |answersEstablish |new |objectives |and |a |new |budget
Potential |negative |outcome |of |budgeting |is |- |verified |answersEmployees |may |understate |sales |
budgets |and |overstate |expenses
Rolling |budget |is |updated |on |a |___ |basis |- |verified |answersQuarterly
What |are |the |components |of |a |master |budget? |- |verified |answersSales, |production, |direct |materials, |
direct |labor, |factory |overhead, |capital |expenditures, |cash, |selling |expenses |and |general |and |
administrative |expense |budgets
Sequence |for |a |master |budget |(4 |steps) |- |verified |answers1.Sales; |2.production; |3.DM, |DL, |and |
Factory |OH; |4.capital |expenditure, |cash, |selling, |and, |general |and |administrative |expenses
Selling |expense |budget |includes |- |verified |answersCommissions, |salary |of |the |sales |manager, |
advertising, |delivery |expenses, |and |marketing |expenses
General |and |administrative |budget |includes |- |verified |answersInsurance, |taxes, |and |depreciation |on |
non |manufacturing |assets
Beginning |cash |balance |plus |cash |receipts |minus |budgeted |cash |payments |- |verified |
answersPreliminary |cash |balance
Where |do |you |put |interest |expense? |- |verified |answersCash |budget
Ending |Retained |Earnings |- |verified |answersCurrent |year's |net |income |plus |previous |years |retained |
earnings |balance
Activity |based |budget |includes |- |verified |answersAuditing, |financial |reporting, |cost |accounting
Fixed |budget |- |verified |answersBased |on |a |single |predicted |amount |of |sales
Flexible |budget |- |verified |answersBased |on |several |different |amounts |of |sales
Management |by |exception |- |verified |answersInvestigating |and |taking |corrective |action |when |variances
|are |material |or |significantly |different |from |the |standard
Steps |to |preparing |a |standard |cost |performance |report |- |verified |answersCompute |and |analyze |
variances; |identify |questions |and |their |answers; |and |take |corrective |and |strategic |actions
