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