BA225 Managerial Accounting
University of Maryland, Baltimore County (UMBC)
Fundamental Managerial Accounting Concepts
Thomas Edmonds, Philip Olds, Bor-Yi Tsay
BA 225 TEST 3
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1. Cedar Furniture provided the following information relevant to its sales for December 2007 and the first quarter of 2008:
Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February 2008 are expected to be:
2. Select the incorrect statement about the master budget.
3. Select the correct equation format for the purchases budget.
4. The Springer Company provides the following standard cost data:
The materials usage variance was:
5. The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa's static budget showed a planned production of 4,000 units. During the period the company actually produced 4,100 units of product. The actual amount of materials used averaged 4.1 pounds per unit. The standard price of material is $1 per pound. Based on this information, the materials usage variance was:
6. A difference between the static budget based on planned volume and a flexible budget prepared at actual volume is called a:
7. Standard cost systems facilitate the management practice known as:
8. Budgeting that involves the development of a master budget to direct the firm's activities over the short-term is referred to as:
9. Coronet Company provided the following information related to its inventory sales and purchases for December 2007 and the first quarter of 2008:
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2008 would be:
10. Select the incorrect statement about budgeting and human behavior.
11. Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 20,000 units and one based on 30,000. The company actually produced and sold 29,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets?
12. McDavid Company has completed its sales budget for the first quarter of 2007. Projected credit sales for the first four months of the year are shown below:
The company's past records show collection of credit sales as follows: 30% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
13. One of the tasks that managers at Greensboro Company have to complete during the budgeting process is to develop a contingency plan for their organization in case a downturn occurs in their business. This budgeting requirement is an example of:
14. Select the correct statement regarding general, selling, and administrative (GS&A) costs.
15. Select the incorrect statement about the planning process.
16. Sometimes employees will deliberately overstate the amount of materials and/or labor that should be required to complete a job. The difference between inflated and realistic standards is known as:
17. The resources used in the manufacturing process are frequently called:
18. The Russell Company provides the following standard cost data per unit of product:
The direct labor usage variance was:
19. Which manager is usually held responsible for materials usage variances?
20. Which of the following is not considered a pro forma financial statement?
21. Which of the following budgets or schedules uses data contained in the selling and administrative expense budget?
22. Which of the following budgets needs to be prepared prior to preparing a purchases budget?
23. Which of the following can reduce the amount of employees' budget gamesmanship?
24. Which of the following factors should be considered in establishing standards for use with a standard costing system?
25. Which of the following statements is true?
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