Costing – Set 4 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 4 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Costing – Set 4 Dear ! This is Costing – Set 4 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) An arrangement of line of authority within company is classified as company structure line of responsibility line of authority organization structure 2 / 50 2) Quantitative expression, of action plan by management of firm for a specified period of time is classified as process complexity batching budget 3 / 50 3) Last step in developing operating budget is implementing decision implementing income efficient implementation effective implementation 4 / 50 4) Second step in developing operating budget is to coverage information obtain information plan accounts plan coordination 5 / 50 5) Practice, which makes target more achievable by underestimating revenues or overestimating cost is called budgetary slack target slack revenue slack cost slack 6 / 50 6) Model which refers possibility for management to conduct sensitivity analysis can be categorized under investment planning models cost planning models revenues forecast models financial planning models 7 / 50 7) System which measures budget, action and plan of each responsibility center is known as responsibility accounting action accounting planned accounting budgeted accounting 8 / 50 8) In master budgeting, cost drivers for manufacturing overhead costs are both a and b direct manufacturing labour-hours budgeted labour-hours setup labour-hours 9 / 50 9) Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as information accounting blame accounting responsibility accounting focused accounting 10 / 50 10) Fourth step in development of operating budget is to choose alternatives predicted improvements evaluate alternatives efficiency improvements 11 / 50 11) Type of budget, which is always available for specified period of future is called discontinued budget period budget continuous budget batch budget 12 / 50 12) Balancing of all aspects of products or services and all departments in company are classified as annual profit plan budgeting complex plan coordination 13 / 50 13) Plan of action; how an organization meets its opportunities and capabilities is classified as action plan step wise plan complex plan strategy 14 / 50 14) An act of making sure, that all employees must understand goals is classified as coordination budgeting communication annual profit plan 15 / 50 15) If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be $15,000 $35,000 $45,000 $5,000 16 / 50 16) Degree of influence that a manager would have on revenues, cost, profit and investment is known as influential power responsibility controllability all of these 17 / 50 17) Financial statements and budget plans of some companies are also called cost statement preformed statement market statement sales statement 18 / 50 18) Direct labour and salary outlays direct material purchases, which are classified as goods disbursements cash disbursements price disbursements budget disbursements 19 / 50 19) If budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be 6000 units 4000 units no units 8000 units 20 / 50 20) Planning of financial aid to coordinate; what is to be done for implementation of plan is classified as budget complexity batching process 21 / 50 21) Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as batching budget complexity process 22 / 50 22) Better administration of budget in budgeting plans require all of these intelligent interpretations persuasion participation 23 / 50 23) Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as operating budget master budget annual budget specific budget 24 / 50 24) Manager who is responsible only for revenues of company can be categorized under the investment center profit center revenue center cost center 25 / 50 25) In Kaizen budgeting, costs are based on all improvements which is based on past prices based on sold quantity based on current practice to be implemented 26 / 50 26) Non-financial and financial aspects of plan by company management, is classified as complexity process budget batching 27 / 50 27) Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as kaizen budgeting number budgeting anticipated budgeting predict budgeting 28 / 50 28) Cash receipts is added in to beginning cash balance to calculate total goods sold total revenue total cash available total goods manufactured 29 / 50 29) Mathematical relationships exist between operating and financing activities that affect master budget are called financial planning models math plan model master plan models operating plan models 30 / 50 30) Factor which provides hedge to managers in adverse and unexpected circumstances is known as target slack costly slack budgetary slack influential slack 31 / 50 31) Third step in developing operating budget is making predictions about future analysis of batches analysis of products analysis of batches 32 / 50 32) Cost influences by responsibility center manager who is considered as manager cost center cost influential cost controllable cost 33 / 50 33) Budgeted income statement and supporting budget schedules are categorized under budgeted income statement slack statement focused statement operating budget 34 / 50 34) starting point in operating budget is list of investors revenue budget cost budget material list 35 / 50 35) Compelling strategic plan, promoting coordination and providing framework of performance are advantages of costing method disadvantages of budget disadvantages of costing method advantages of budget 36 / 50 36) Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to stand by production planned production budget production setup production 37 / 50 37) First step in developing an operating budget is to identify problem identify product identify quartiles identify percentiles 38 / 50 38) Variance used by managers to check whether company has performed well and properly implemented strategies is considered as performance evaluation proper implementation strategic implementation well evaluated 39 / 50 39) Schedule of expected disbursements and cash receipts is considered as planned schedule cash budget price schedule market budget 40 / 50 40) If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be 4000 units 8000 units 10000 units 5000 units 41 / 50 41) Budget plan in many companies is also referred as profit plan sales plan cost plan marketing plan 42 / 50 42) Master budget includes all projections of company’s budget and focuses on financial plan serial correlation marketing plan both B and C 43 / 50 43) Focus on budget cost of all activities necessary to sell and produce market offerings is known as production based budgeting activity based budgeting raw material budgeting cost based budgeting 44 / 50 44) Document, which contains information about used material sequence, detail and quantity of raw material is classified as bill of raw materials bill of materials bill of sequence bill of detail 45 / 50 45) Budget, which predicts effect of given level of operations on a cash position is classified as price schedule cash budget planned schedule market budget 46 / 50 46) What-if technique, which examines changes in results if original prediction would not be achieved is called change analysis original analysis predicted analysis sensitivity analysis 47 / 50 47) Continuous budget is also known as past budget specific budget pin budget rolling budget 48 / 50 48) Higher and accurate budgeted profit forecast of managers lead to revenue bonus influence bonus low incentive bonus high incentive bonus 49 / 50 49) Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as balanced budget cash flows budget capital budget financial budget 50 / 50 50) Significant feature of Kaizen Budgeting is cost suggestion price suggestion employee suggestion customer suggestion Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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