管理会计作业：Profit Planning

Chapter7:TheMasterBudget:ProfitPlanning

7.1-1Budgetingisatechniquewhichisusedtoplanforfuturecashinflowsandoutflows.

Answer:True

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.1-2Agoalofthebudgetingprocessistoassistmanagerswithcoordinatingandimplementingthe

businessplan.

Answer:True

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.1-3Budgetsprovidebenchmarksthathelpmanagersevaluateperformance.

Answer:True

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.1-4Agoalofthebudgetingprocessistocommunicateaconsistentsetofplansthroughoutthecompany.

Answer:True

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AICPAFunctionalCompetencies:Reporting

7.1-5Managementmustgetemployeestoacceptthebudget'sgoalsinordertoeffectivelyusethebudgetasa

benchmarkforevaluatingperformance.

Answer:True

Difficulty:1

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

Copyright2010PearsonEducationInc.PublishingasPrenticeHall.1

7.1-6WhichofthefollowingisNOTanadvantageofthebudgetingprocess?

A)Thebudgetprocessaidsinperformanceevaluation.

B)Thebudgetprocesshelpscoordinatetheactivitiesoftheorganization.

C)Thebudgetprocessforcesmanagementtoplanahead.

D)Thebudgetprocessiscostlyandtimeconsuming.

Answer:D

Difficulty:2

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.1-7WhichofthefollowingisNOTabenefitofbudgeting?

A)Thebudgetingprocessfocusesmanagement'sattentiononthefuture.

B)Thebudgetingprocessimprovesthedecision-makingprocess.

C)Thebudgetingprocessimprovesemployeemotivation.

D)Thebudgetingprocessassuresprofitability.

Answer:D

Difficulty:1

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AACSB:ReflectiveThinking

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.1-8WhichofthefollowingstatementsaboutbudgetingisINCORRECT?

A)Theoperatingbudgetshouldbepreparedbytopmanagementbecausetheyunderstandtheoverall

objectivesofthecompanybetterthanmid-managementpersonnel.

B)Budgetingisanaidtoplanningandcontrol.

C)Budgetshelptocoordinatetheactivitiesoftheentireorganization.

D)Budgetspromotecommunicationandcoordinationbetweendepartments.

Answer:A

Difficulty:2

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AICPAFunctionalCompetencies:Reporting

7.1-9Whichofthefollowingstatementsregardingthebudgetingprocessiscorrect?

A)Thebudgetshouldbedesignedfromthebottomup,withinputfromemployeesatalllevels.

B)Thebudgetshouldbeapprovedbythecompany9sexternalauditors.

C)Thebudgetshouldbedesignedbytopmanagementandcommunicatedtolower-levelpersonnel.

D)Thebudgetingprocessshouldincludelimitedinputfromlowermanagement.

Answer:A

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.1-10Forthebudgetingprocesstobeeffective,managementmustfocusonlyonthelong-termbudget.

Answer:False

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.2-1Themasterbudgetisthesetofbudgetedfinancialstatementsandsupportingschedulesfortheentire

organization.

Answer:True

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AICPAFunctionalCompetencies:Reporting

7.2-2Themasterbudgetincludestheoperatingbudget,thecapitalexpendituresbudgetandthefinancial

budget.

Answer:True

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AICPAFunctionalCompetencies:Reporting

7.2-3Theproductionbudgetmustbepreparedbeforeanyothercomponentoftheoperatingbudget.

Answer:False

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AICPAFunctionalCompetencies:Reporting

7.2-4Whichofthefollowingbudgetsisamajorpartofthemasterbudgetandfocusesontheincomestatement

anditssupportingschedules?

A)Operatingbudget

B)Cashbudget

C)Capitalexpendituresbudget

D)Salesbudget

Answer:A

Difficulty:2

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.2-5WhichofthefollowingstatementsisINCORRECT?

A)Thesalesbudgetfeedsintoallotherbudgets.

B)Thesalesandendingfinishedgoodsinventorybudgetsdeterminetheproductionbudget.

C)Thesalesandcashbudgetsdeterminethebudgetedincomestatement.

D)Thebudgetingprocessprovidesbenchmarksthatmotivateemployees.

Answer:C

Difficulty:2

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AICPAFunctionalCompetencies:Reporting

7.2-6Thestartingpointinthebudgetingprocessisthepreparationofthe:

A)cashbudget.

B)directmaterialsbudget.

C)salesbudget.

D)budgetedincomestatement.

Answer:C

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AICPAFunctionalCompetencies:Reporting

7.2-7Whichisthecorrectorderofpreparation?

A)Budgetedincomestatement;productionbudget;salesbudget;directmaterialsbudget

B)Salesbudget;productionbudget;directlaborbudget;budgetedbalancesheet

C)Productionbudget;salesbudget;manufacturingoverheadbudget;directmaterialsbudget

D)Anyoftheabove

Answer:B

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.2-8Thebudgetthatinformsmanagementabouttheirfixedassetsexpendituresiscalledthe:

A)cashbudget.

B)budgetedbalancesheet.

C)productionbudget.

D)capitalexpendituresbudget.

Answer:D

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.2-9Thebudgetthatinformsmanagementabouttheamountofgoodstheywillmakeiscalledthe:

A)cashbudget.

B)budgetedbalancesheet.

C)productionbudget.

D)capitalexpendituresbudget.

Answer:C

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.3-1Thestartingpointofthebudgetingprocessistopredictoperatingincomefbrtheupcomingperiod.

Answer:False

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.3-2Budgetedfinishedgoodsinventorywillincreasewhenbudgetedsalesaregreaterthanbudgeted

production.

Answer:False

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.3-3Budgetedcashoperatingexpensesincludedepreciationexpense.

Answer:False

Difficulty:1

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AICPAFunctionalCompetencies:Measurement,Reporting

7.3-4Budgetedoperatingexpensesforthecurrentyearincludetheexpirationofinsurancethatwaspaidforina

previousperiod.

Answer:True

Difficulty:1

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AICPAFunctionalCompetencies:Measurement,Reporting

7.3-5Desiredendinginventoryis80%ofbeginninginventory.Ifcostofgoodssoldis$300,000,whichofthe

followingstatementsisTRUEregardingpurchases?

A)Purchaseswillbemorethancostofgoodssold.

B)Purchaseswillbe80%ofcostofgoodssold.

C)Purchaseswillequalcostofgoodssold.

D)Purchaseswillbelessthancostofgoodssold.

Answer:D

Difficulty:2

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.3-6SpencerCompanyexpectscashsalesforJulyof$12,000,anda10%monthlyincreaseduringAugustand

September.Creditsalesof$4,000inJulyshouldbefollowedby25%increasesduringAugustand

September.WhatarebudgetedcashsalesandbudgetedcreditsalesforSeptemberrespectively?

A)$13,200and$6,000

B)$14,520and$6,250

C)$14,520and$6,000

D)$14,400and$6,250

Answer:B

Difficulty:2

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-7WhichofthefollowingbudgetsisNOTanoperatingbudget?

A)Budgetedincomestatement

B)Salesbudget

C)Budgetedbalancesheet

D)Finishedgoodsinventorybudget

Answer:C

Difficulty:2

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AACSB:ReflectiveThinking

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Reporting

7.3-8AMarchsalesforecastprojectsthat10,000unitsofProductAand12,000unitsofProductBaregoingto

besoldatpricesof$11and$13,respectively.ThedesiredendinginventoryofProductAis20%higher

thanthebeginninginventoryof1,000units.HowmucharetotalMarchsalesforProductAanticipatedto

be?

A)$110,000

B)$130,000

C)$132,000

D)$156,000

Answer:A

Difficulty:2

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-9WrightCompanyexpectscashsalesfbrJulyof$12,000,anda20%monthlyincreaseduringAugustand

September.Creditsalesof$4,000inJulyshouldbefollowedby10%decreasesduringAugustand

September.WhatarebudgetedcashsalesandbudgetedcreditsalesforSeptember?

A)$17,280and$3,240

B)$14,400and$4,400

C)$9,600and$4,400

D)$17,280and$4,840

Answer:A

Difficulty:2

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-10HeathCompanyhasbeginninginventoryof21,000unitsandexpectedsalesof48,000units.Ifthedesired

endinginventoryis15,500units,howmanyunitsshouldbeproduced?

A)27,000

B)42,500

C)45,000

D)53,000

Answer:B

Difficulty:2

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-11JanewayCorporationdesiresaDecember31endingfinishedgoodsinventoryof1,500units.Budgeted

salesforDecemberare2,300units.TheNovember30finishedgoodsinventorywas850units.Whatis

budgetedproductioninunits?

A)2,350

B)2,950

C)3,150

D)3,800

Answer:B

Difficulty:2

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-12Whichofthefollowingbudgetsorfinancialstatementsisanoperatingbudget?

A)Capitalexpendituresbudget

B)Budgetedbalancesheet

C)Salesbudget

D)Cashbudget

Answer:C

Difficulty:1

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AICPAFunctionalCompetencies:Reporting

7.3-13GriffithCompanyhasbudgetedpurchasesofdirectmaterialsforDecemberof$105,000.Expected

beginningmaterialsinventoryonDecember1andendingmaterialsinventoryonDecember31are

$120,000and$129,000,respectively.Ifdirectmaterialsrequisitionedpurchasesaverage75%ofdirect

materialspurchases,whatarebudgeteddirectmaterialspurchasesforDecember?

A)$114,000

B)$120,000

C)$128,000

D)$152,999

Answer:C

Difficulty:3

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-14WhichofthefollowingstatementsisINCORRECT?

A)Budgetedendingfinishedgoodsinventorywillincreaseifbudgetedproductionexceeds

budgetedsalesduringtheperiod.

B)Budgetedendingrawmaterialsinventorywilldecreaseifpurchasesofrawmaterialsarelessthanthe

usesofrawmaterials.

C)Anincreaseinbudgetedaccountsreceivableoccurswhenbudgetedsalesexceedbudgetedcash

collectionsfromcustomers.

D)Anincreaseinbudgetedaccountspayableoccurswhenbudgetedpurchasesarelessthan

budgetedcashpaymentstosuppliers.

Answer:D

Difficulty:3

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-15Adepartmentstorehasbudgetedcostofsalesof$36,000foritsmen'ssuitsinMarch.Managementalso

wantstohave$15,000ofmen'ssuitsinfinishedgoodsinventoryattheendofMarchtoprepareforthe

summerseason.Beginningfinishedgoodsinventoryofmen'ssuitsfbrMarchisexpectedtobe$9,000.

Whatdollaramountofmen'ssuitsshouldbeproducedinMarch?

A)$42,000

B)$45,000

C)$51,000

D)$60,000

Answer:A

Difficulty:3

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-16Hogan'smanagementhasforecastedsalesof50,000unitsandanincreaseinfinishedgoodsof10,000

unitsfortheupcomingyear.HowmanyunitsisHoganplanningtoproducenextyear?

A)50,000

B)40,000

C)60,000

D)30,000

Answer:C

Difficulty:1

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-17YokeleyEnterprisesrecordedsalesof$160,000duringMarch.Managementexpectssalestoincrease5%

inApril,3%inMay,and5%inJune.Costofgoodssoldisexpectedtobe70%ofsales.Whatisthe

budgetedgrossprofitforJune?

A)$54,508

B)$112,000

C)$127,184

D)$181,692

Answer:A

Difficulty:3

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-18LanCorporationhadbeginninginventoryof42,000unitsandexpectssalesof96,000unitsduringthe

year.Desiredendinginventoryis31,000units.HowmanyunitsshouldLanCorporationproduce?

A)65,000units

B)73,000units

C)85,000units

D)107,000units

Answer:C

Difficulty:2

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-19LiuElectronicsbudgetedsalesof$400,000forthemonthofNovemberandcostofgoodssoldequalto

65%ofsales.BeginningfinishedgoodsinventoryfbrNovemberwas$80,000andendingfinishedgoods

inventoryforNovemberisestimatedat$72,000.HowmuchisthebudgetedproductionforNovember?

A)$252,000

B)$254,800

C)$264,800

D)$265,200

Answer:A

Difficulty:3

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-20NortonCompanypreparedthefollowingsalesbudget:

MonthBudgetedSales

March$200,000

April$180,000

May$220,000

June$260,000

Theexpectedgrossprofitrateis40%andthefinishedgoodsinventoryattheendofFebruarywas

$36,000.Desiredinventorylevelsattheendofthemonthare30%ofthenextmonth'scostofgoodssold.

WhatisthedesiredbeginninginventoryonJune1?

A)$36,000

B)$39,600

C)$43,200

D)$46,800

Answer:D

Difficulty:3

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-21NortonCompanypreparedthefollowingsalesbudget:

MonthBudgetedSales

March$200,000

April$180,000

May$220,000

June$260,000

Theexpectedgrossprofitrateis40%andtheinventoryattheendofFebruarywas$36,000.Desired

inventorylevelsattheendofthemonthare30%ofthenextmonth'scostofgoodssold.Whatisthe

desiredcostofgoodssoldforMay?

A)$43,200

B)$72,000

C)$132,000

D)$144,000

Answer:C

Difficulty:2

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AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-22NortonCompanypreparedthefollowingsalesbudget:

MonthBudgetedSales

March$200,000

April$180,000

May$220,000

June$260,000

Theexpectedgrossprofitrateis40%andtheinventoryattheendofFebruarywas$36,000.Desired

inventorylevelsattheendofthemontharc30%ofthenextmonth飞costofgoodssold.Whatisthe

totalproductionbudgetedforApril?

A)$72,000

B)$108,000

C)$115,200

D)$147,600

Answer:C

Difficulty:3

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EOCRef:E7-10

AACSB:AnalyticSkills

AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-23NortonCompanypreparedthefollowingsalesbudget:

MonthBudgetedSales

March$200,000

April$180,000

May$220,000

June$260,000

Theexpectedgrossprofitrateis40%andtheinventoryattheendofFebruarywas$36,000.Desired

inventorylevelsattheendofthemonthare30%ofthenextmonth'scostofgoodssold.Whatisthe

totalproductionbudgetedforMay?

A)$132,000

B)$135,600

C)$139,200

D)$175,200

Answer:C

Difficulty:3

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EOCRef:E7-10

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AICPABusinessPerspectiveCompetencies:CriticalThinking

AICPAFunctionalCompetencies:Measurement,Reporting

7.3-24WhitakerCompanybudgetspayrollat$3,000permonthplusapercentageofmonthlysales.TheJune

operatingexpensebudgetincludestotalpayrollof$10,500withbudgetedsalesof$150,000.Salesfor

Julyarebudgetedat$165,000,whilepurchasesofinventoryforJulyarebudgetedat$85,000.

DepreciationandinsurancefbrJulyareestimatedat$750and$500,respectively.Expensesrelatedto

pur