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ch8
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Questions in this quiz (7)
1Pedgrift Company uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal shipping costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as:
- Aabsorption accounting.
- Bcontribution accounting.
- Coperational budgeting.
- Dresponsibility accounting.
2The budget or schedule that provides the required data for the preparation of the direct materials budget is the:
- Aschedule of cash collections
- Braw materials purchases budget
- Cproduction budget.
- Dcash budget
3Experience has shown that 50% of the Karaskiewicz Company's sales are for cash. The rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remaining credit sales are expected to be uncollectible. The company's sales budget for the year included budgeted sales of $140,000 in January, $120,000 in February, and $160,000 in March. Total cash receipts in March would be budgeted to be:
- A56,000
- B136,000
- C$151,500.
- D$167,000.
4Pluta Company plans the following beginning and ending inventory levels (in units) for January:Two units of raw material are needed to produce each unit of finished product. If the company plans to sell 960,000 units during April, the number of units it would need to manufacture during April would be:
- A1,020,000 units.
- B960,000 units.
- C900,000 units.
- D880,000 units.
5Liko Company plans to sell 48,000 units during the month. If the company has 10,000 units on hand at the start of the month, and plans to have 8,000 units on hand at the end of the month, how many units must be produced during the month
- A46,000
- B48,000
- C50,000
- D56,000
6Waggoner Company has a cash balance of $36,000 on April 1. The company is required to maintain a minimum cash balance of $24,000. During April expected cash receipts are $180,000. Expected cash disbursements during the month total $208,000. During April the company will need to borrow:
- A8,000.
- B$12,000
- C$16,000
- D$28,000
7Simpson Company makes and sells a single product. Budgeted sales for April are $1,200,000. Gross margin is budgeted at 30% of sales. If the net income for April is budgeted at $160,000, budgeted selling and administrative expenses must be
- A$533,332
- B408,000.
- C$312,000.
- D$200,000
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- Accounting Quiz on ch8, created by Diocar Cruz on 11/12/2017.
- Author
- Diocar Cruz
- Language
- English
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