Cost Management Chapter 8 Exam Questions with Verified Answers Latest Update (Already Passed)
The process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance is known as: - Answers...
The process of setting standards, receiving feedback on actual performance, and taking corrective action
whenever actual performance deviates significantly from planned performance is known as: - Answers
control
Which of the following is true about a sales forecast? - Answers Creation of a sales forecast is the
responsibility of the Marketing Department
A moving 12-month budget is referred to as: - Answers a continuous budget
Consider the following information for Aqua Company, a producer of pump shafts.
Sales 500,000 units
Desired ending inventory 120,000 units
Beginning inventory 80,000 units
Calculate the units to be produced to meet the sales needed and to satisfy the ending inventory
requirement. - Answers (500,000+120,000-80,000)=540,000 units
Which of the following is the sequence in which the budgets of a firm are prepared? - Answers Sales
budget, production budget, and budgeted income statement
Flamingo Company makes bobbin cases. The budgeted material cost of each unit is $0.3. The budgeted
direct labor hours per unit is 0.02 hours and wage rate is $15 per direct labor hour. The budgeted
variable overhead per unit is $0.45 and fixed overhead for the year is $1,395,000. During the year,
15,500,000 units were expected to be produced and 150,000 units were budgeted for ending finished
goods inventory. Calculate the total ending inventory cost. - Answers Unit cost = Direct materials +
Direct labor + Budgeted variable overhead + Budgeted fixed overhead = $0.3 + (0.02 × $15) + $0.45 +
($1,395,000 / $15,500,000) = $1.14
Total ending inventory = Units ending inventory × Unit cost = 150,000 × $1.14 = $171,000
Which of the following budgets is included in the financial budgets? - Answers A capital expenditure
budget
Which of the following is true of a traditional master budget? - Answers It is department oriented
Azure Company provides the following information:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
