
-
Units to be produced for the month of April would be Rs. 19,000 if opening inventory, closing inventory and budgeted sales were 4,000 units, 3,500 units and 20,000 units respectively.
True
False
Cost control technique is only effective when some form of standard can be set.
True
Flase
Flexible budget consists on several budgets.
True
Flase
Indirect material cost is included in factory overhead cost budget.
True
Flase
Cash budget is part of budgeted income statement.
True
Flase
Cost control technique is concerned with genuine cost saving even standards are challenged.
True
Flase
Production budget can be calculated as follows:
Sales budgeted + desired ending inventory – opening inventoryTrue
Flase
Under estimation of revenues and costs is budget padding.
True
Flase
Direct material budget, direct labor budget and factory overhead budget are part of budgeted income statement.
True
Flase
Direct material budget is part of budgeted income statement.
True
Flase
Cash budget is part of budgeted balance sheet.
True
Flase
Nature of flexible budget is dynamic.
True
Flase
Fixed budget is based on assumption and flexible budget is realistic.
True
Flase
Price variance can be calculated as follows as follows:
(Actual cost incurred - standard cost) x Actual quantity of units purchasedTrue
Flase
FIN704 - Managerial Accounting Quiz#2 Solution and Discussion
-
Units to be produced for the month of April would be Rs. 19,000 if opening inventory, closing inventory and budgeted sales were 4,000 units, 3,500 units and 20,000 units respectively.
-
True
-
False
Cost control technique is only effective when some form of standard can be set.
-
True
-
Flase
Flexible budget consists on several budgets.
-
True
-
Flase
Indirect material cost is included in factory overhead cost budget.
-
True
-
Flase
Cash budget is part of budgeted income statement.
-
True
-
Flase
Cost control technique is concerned with genuine cost saving even standards are challenged.
-
True
-
Flase
Production budget can be calculated as follows:
Sales budgeted + desired ending inventory – opening inventory-
True
-
Flase
Under estimation of revenues and costs is budget padding.
-
True
-
Flase
Direct material budget, direct labor budget and factory overhead budget are part of budgeted income statement.
-
True
-
Flase
Direct material budget is part of budgeted income statement.
-
True
-
Flase
Cash budget is part of budgeted balance sheet.
-
True
-
Flase
Nature of flexible budget is dynamic.
-
True
-
Flase
Fixed budget is based on assumption and flexible budget is realistic.
-
True
-
Flase
Price variance can be calculated as follows as follows:
(Actual cost incurred - standard cost) x Actual quantity of units purchased-
True
-
Flase
-
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