COST ACCOUNTING EXAM 3 CHAPTERS: 6 (COST
ACCOUNTING A MANAGERIAL EMPHASIS, HORNGREN,
DATAR, RAJAN; BOOK) EXAM QUESTIONS AND PRACTICE
PROBLEMS-(FROM HANDOUTS) (MISSISSIPPI STATE) BRAD
LANG
1) A budget:
A) is the quantitative expression of a proposed plan of action by management
B) is an aid to coordinate what needs to be done
C) generally includes both financial and nonfinancial aspects of the plan
D) All of the above are correct. -ANSWER- Answer: D
2) A budget
A) is the quantitative expression of a proposed plan of action.
B) aids in coordinating what needs to be done.
C) includes both financial and nonfinancial aspects.
D) All of these answers are correct. -ANSWER- Answer: D
,3) Budgeting is used to help companies:
A) plan to better satisfy customers
B) anticipate potential problems
C) focus on opportunities
D) All of these answers are correct. -ANSWER- Answer: D
4) A master budget:
A) includes only financial aspects of a plan and excludes nonfinancial aspects
B) is an aid to coordinating what needs to be done to implement a plan
C) includes broad expectations and visionary results
D) should not be altered after it has been agreed upon -ANSWER- Answer: B
5) Operating decisions primarily deal with:
A) the use of scarce resources
,B) how to obtain funds to acquire resources
C) acquiring equipment and buildings
D) satisfying stockholders -ANSWER- Answer: A
6) Financing decisions primarily deal with:
A) the use of scarce resources
B) how to obtain funds to acquire resources
C) acquiring equipment and buildings
D) preparing financial statements for stockholders -ANSWER- Answer: B
7) Budgeting provides all of the following EXCEPT:
A) a means to communicate the organization's short-term goals to its members
B) support for the management functions of planning and coordination
C) a means to anticipate problems
D) an ethical framework for decision making -ANSWER- Answer: D
, 8) If initial budgets prove UNACCEPTABLE, planners achieve the most benefit
from:
A) planning again in light of feedback and current conditions
B) deciding not to budget this year
C) accepting an unbalanced budget
D) using last year's budget -ANSWER- Answer: A
9) Operating budgets and financial budgets:
A) combined form the master budget
B) are prepared before the master budget
C) are prepared after the master budget
D) have nothing to do with the master budget -ANSWER- Answer: A
10) A good budgeting system forces managers to examine the business as they
plan, so they can:
A) detect inaccurate historical records
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