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1.Flexible budgets reflect a companys anticipated costs based on Variation in

1. Activity levels
2. Inflation rates
3. Manager
4. Anticipated capital acquisitions
5. Standards

2.Auditory co which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:

1. Actual units produced: 13,000
2. B. Actual fixed overhead incurred: $742,000
3. Standard fixed overhead rate: $15.00 per hour
4. Budgeted fixed overhead: $720,000
5. Planned level of machine hour activity: 48,000

3.If Auditory estimates 4 hours to manufacture a completed unit, the companys fixed overhead budge variance would be:

1. $22k favorable
2. $22k unfavorable
3. $60k favorable
4. $60k unfavorable
5. None of the answers is correct

4.Which of the following would have no effect, either direct or indirect, on an organizations cash budget?

1. Sales revenues
2. Outlays for professional labor
3. Advertising expenditures
4. Raw material purchases
5. None of the answers is correct, since all of these items would have some influence

5.Micracle Enterprises sells electronics in retail outlets and on the internet. It uses activity based budgeting in the preparation of its selling, general and administrative expense budget. Which of the following costs would the company likely classify as a unit level expense on its budget?

1. Media advertising
2. Retail outlet sales commissions
3. Salaries of web site maintenance personnel
4. Administrative salaries
5. Salary of the sales manager employed at sore no 23

6.Gallonte inc began operations in April of this year. It makes all sales on account, subject to the following collection pattern:30% are collected in the month of sale; 60% are collected in the fist month after sale; and 10% are collected in the second month after sale. If sales for April May and June were $60, $80k and $70k respectively what were the firms budgeted collection for May?

1. $21k
2. $60k
3. $69k
4. $75k
5. None of the answers is correct

7.For and airline which of the following would not be an operational budget

1. A labor budget for flight crew
2. A budget of planned air miles to be flown
3. A materials budget for aircraft parts
4. A fuel budget
5. A cash receipts budget of flying consumers

8.A company that uses activity based budgeting performs the following:

1-Plans Activities for the budget period 2-Forecasts the demand for products and services as well as the customers to be served

3-Budgets the resources necessary to carry out activities

1.Which of the following denotes the proper order of the preceding activites?

1. 1 -2 -3
2. 2-1-3
3. 2-3-1
4. 3-1-2
5. 3-2-1

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