Acc/561 Sample Final Examination

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ACC/561 Sample Final Examination

Week One: Decision Making

Objective: Explain the role of budgets and performance reports in the management decision-making process.

1. The Hola Company held a Christmas party. The company expected attendance of 100 persons and prepared the following budget:

Hotel room rental $600 Food 500 Entertainment 800 Decorations 300

Totals $2,200

After all bills for the party were paid, the total came to $2,315. Details are $575 for hotel room rental, $640 for food, $750 for entertainment, and $350 for decorations. 100 persons attended the party. What is the main reason for the unfavorable total budget variance? a. Hotel room rental is
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a. regression analysis method
b. high low method
c. least squares regression method
d. visual-fit method

Objective: Explain how cost accounting systems are used to determine the cost of a product, service, customer, or other cost objective.

10.__________ is the part of the accounting system that measures costs for the purposes of management decision-making and financial reporting.
a. Cost determination
b. Cost accounting
c. Cost accumulation
d. Cost summary

Week Four: Budgets

Objective: Explain the major components, advantages, and disadvantages of a master budget.

11. The financial budget includes __________.
a. only the capital budget and the cash budget
b. only the capital budget and the budgeted balance sheet
c. the capital budget, the cash budget, and the budgeted balance sheet
d. the cash budget, the budgeted statement of cash flows, and the retained earnings budget

Objective: Assess the risks associated with sales forecasting.

12. For next year, Dunphy Company has budgeted sales of 30,000 units, target ending finished goods inventory of 1,000 units, and a beginning finished goods inventory of 800 units. All other inventories are zero. __________ units should be produced.
a. 29,800
b. 30,000
c. 30,200
d. 31,800

Objective: Assess the risks associated with sales forecasting.

13. Activity-level variances plus flexible-budget variances equals __________.
a. total static-budget variances

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