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