46. The budget process involves doing all the following except: a. establishing specific goals b. executing plans to achieve the goals c. periodically comparing actual results with the goals d. dismissing all managers who fail to achieve operational goals specified in the budget
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
____ 46. The budget process involves doing all the following except:
|
a. |
establishing specific goals |
|
b. |
executing plans to achieve the goals |
|
c. |
periodically comparing actual results with the goals |
|
d. |
dismissing all managers who fail to achieve operational goals specified in the budget |
____ 47. Division W of MJW Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $100,000. What is the profit margin for Division W?
|
a. |
14% |
|
b. |
2.8% |
|
c. |
10% |
|
d. |
5.47% |
____ 48. Bulls Company is considering the acquisition of a machine that costs $375,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual
|
a. |
3 years |
|
b. |
4.3 years |
|
c. |
2.5 years |
|
d. |
5 years |
____ 49. The following data relate to direct labor costs for the current period:
|
|
6,000 hours at $12.00 |
|
Actual costs |
7,500 hours at $11.60 |
What is the direct labor rate variance?
|
a. |
$15,000 unfavorable |
|
b. |
$3,000 favorable |
|
c. |
$17,400 unfavorable |
|
d. |
$2,400 favorable |
____ 50. Quincy Corp. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential cost of producing Product D?
|
a. |
$7 per pound |
|
b. |
$8.75 per pound |
|
c. |
$15 per pound |
|
d. |
$5.25 per pound |
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