ACC/561 ACC 561 Week 5 WileyPLUS Practice Quiz

Question 1

They enable the budget committee to earn their paycheck.

They provide management with information about the company's past performance.

They help communicate goals and provide a basis for evaluation.

They guarantee the company will be profitable if it meets its objectives.

Question 2

past performance.

a clean slate, with no expectations.

expected future net income.

to motivate the sales force.

Question 3

The most widely accepted budget by the organization is the one prepared by top management.

The most widely accepted budget by the organization is the one prepared by the department heads.

Budgets are hardly ever accepted by anyone except top management.

Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process.

Question 4

The use of budgets in controlling operations

The degree to which the CFO controls the budget

Another name for a flexible budget

The process of providing information on budget differences to lower level managers

Question 5

appears on the company's external financial statements.

is done by the external auditors.

is usually done orally in departmental meetings.

appears on periodic budget reports.

Question 6

shows planned results at the original budgeted activity level.

is changed only if the actual level of activity is different than originally budgeted.

should not be prepared in a company.

is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.

Question 7

only be prepared at the highest level of managerial responsibility.

show only those costs that a manager can control.

only show variable costs.

be prepared in accordance with generally accepted accounting principles.

Question 8

Profit and cost centers

Cost and investment centers

Investment and profit centers

Only profit centers

Question 9

a cost center.

an investment center.

not a responsibility center.

a profit center.

Question 10

The total number of units times the budgeted amount expected

The total amount that appears on the budget for product costs

Any amount that appears on a budget

The amount management thinks should be incurred to produce a good or service

Question 11

makes management by exception more difficult.

makes employees less "cost-conscious."

increases clerical costs.

provides a basis for evaluating cost control.

Question 12

Price

Quantity