Assume the following ratios remain for the year 2020: cost of sales, 35% of sales; tax, 30% of net income; expenses,10% of sales. Data for 2019 shows sales of P1,000,000; expected to increase by 20% in 2020.5. Projected increase in sales would bea) P20,000b) P120,000c) P200,000d) P1,200,0006. Sales for year 2020 should bea) P200,000c) P2,000,000b) P1,200,000d) P12,00,0007. Cost of sales in 2020 is expected to amount toa) P140,000b) P350,000c) P420,000d) P560,0008. If current liabilities is 14% of sales, the spontaneous increase in current liabilities would bea) P28,000b) P35,000c) P42,000d) P56,0009. For 2020, expenses are projected to reacha) P20,000b) P120,000c) P200,000d) P1,200,00010. Assume there is no interest expense in 2020. Tax would then amount tob) P54,000a) P198,000c) P25,200d) P120,000 1. The more reliable sales amount from which to base projected sales isb) Latest yeara) Latest monthc) Latest 2 yearsd) Latest 5 years2. Assume: Each factory worker can make 10 units of product per hour. Each worker's wage is P6 per hour.The total labor cost to finish 20,000 units of product isa) P6,000b) P12,000c) P120,000d) P1,200,0003. The following are steps in the financial planning process. Choose the correct order.A. Analysis and evaluation of projected financial statementsB. Setting forecasts on sales, cost, expenses and capital expendituresC. Review and evaluation of projected financial planD. Preparation of projected financial statementsс) В-А-С-Da) C-A-D-Bb) В-D-A-Cd) A-C-B-D4. Assume the following projections or forecasts: Retained earnings will increase by P75; current assets willincrease by P200; current liabilities will spontaneously increase by P105. Funds need to increasebya) P380b) P240c) P170d) P20

5. Projected Increase in sales = Projected Sales in year 2020 - Sales in year 2019 Projected…

Assume the following ratios remain for the year 2020: cost of sales, 35% of sales; tax, 30% of net income; expenses, 10% of sales. Data for 2019 shows sales of P1,000,000; expected to increase by 20% in 2020. 5. Projected increase in sales would be a) P20,000 b) P120,000 c) P200,000 d) P1,200,000 6. Sales for year 2020 should be a) P200,000 b) P1,200,000 c) P2,000,000 d) P12,00,000 7. Cost of sales in 2020 is expected to amount to b) P350,000 a) P140,000 c) P420,000 d) P560,000 8. If current liabilities is 14% of sales, the spontaneous increase in current liabilities would be a) P28,000 b) P35,000 c) P42,000 d) P56,000 9. For 2020, expenses are projected to reach a) P20,000 b) P120,000 c) P200,000 d) P1,200,000 10. Assume there is no interest expense in 2020. Tax would then amount to a) P198,000 b) P54,000 c) P25,200 d) P120,000

Assume the following ratios remain for the year 2020: cost of sales, 35% of sales; tax, 30% of net income; expenses, 10% of sales. Data for 2019 shows sales of P1,000,000; expected to increase by 20% in 2020. 5. Projected increase in sales would be a) P20,000 b) P120,000 c) P200,000 d) P1,200,000 6. Sales for year 2020 should be a) P200,000 b) P1,200,000 c) P2,000,000 d) P12,00,000 7. Cost of sales in 2020 is expected to amount to b) P350,000 a) P140,000 c) P420,000 d) P560,000 8. If current liabilities is 14% of sales, the spontaneous increase in current liabilities would be a) P28,000 b) P35,000 c) P42,000 d) P56,000 9. For 2020, expenses are projected to reach a) P20,000 b) P120,000 c) P200,000 d) P1,200,000 10. Assume there is no interest expense in 2020. Tax would then amount to a) P198,000 b) P54,000 c) P25,200 d) P120,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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