# 2510 Midterm

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YORK UNIVERSITY Faculty of Liberal Arts & Professional Studies; School of Administrative Studies ADMS2510 3.0 Mid-Term Examination #2 Sunday 27 rd November 2011: 10am - noon Instructors: Alison Beavis, John Parkinson Location: Section: A C D E F G H Instructions: a. b. c. d. e. f. g. CLH I E I L D F L Day/time Tuesday 4-7 Thursday 4-7 Monday 7-10 Wednesday 4-7 Internet section (separate exam) Friday 11.30 -2.30 Monday 4-7 You must complete the Scantron sheet with a pencil. Put your name and student number at the top of the Scantron sheet provided. This is a closed book examination and no collaboration is allowed. There are of 50 questions in total; they are equally weighted. Answer all the…show more content…
A) True B) False 15. Zero-based budgeting requires managers to justify all costs of programs as if these programs were being proposed for the first time. A) True B) False 16. The static budget is a good tool for assessing whether variable costs are under control or not. A) True B) False 17. The Waverly Company has budgeted sales for next year as follows: Quarter Sales in Units First 12,000 Second 14,000 Third 18,000 Fourth 16,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter 's budgeted sales in units. The finished goods inventory at the start ofthe year is 3,000 units. What should be the scheduled production for the third quarter? A) 13,500 units. B) 17,500 units. C) 18,500 units. D) 22,000 units. Page 3 18. ABC Company has a cash balance of \$9,000 on April 1. The company must maintain a minimum cash balance of \$6,000. During April, expected cash receipts are \$45,000. Expected cash disbursements during the month total \$52,000. What amount will the company need to borrow during April? A) \$2,000. B) \$4,000. C) \$6,000. D) \$8,000. Use the following to answer questions 19-20: Justin 's Plant Store, a retailer, started operations on January 1. On that date, the only assets were \$16,000 in cash and \$3,500 in merchandise inventory. For purposes of budget