Ngoài

Reducing the incidence of budgetary slack is an advantage of a ‘bottom-up’ style of budgeting.
Is it true or false

• True

• False

The contribution ratio of the product A 40%. The manufacturer of the product A wishes to make a contribution of $100,000 towards fixed cost.
If the selling price is 5$ per unit, the number of unit A that must be sold is:

• A. 50,000 units

• B. 40,000 units

• C. 20,000 units

• D. 8,0000 units

The actual number of units produced was 2,000,
What was the total direct materials variance?

• A. Nil

• B.$10,000 Adverse

• C.$10,000 Favourable

• D. 511,000 Adverse

Is the following statement about a flexible budget true or false?
"Flexible budget shows the costs and revenues at different levels of activity"

• True

• False

A company expected to produce 200 units of its product, the Bone, in 20X3. In fact, 260
units were produced. The standard labour cost per unit was $70 (10 hours at a rate of $7 per hour). The actual labour cost was $18,600 and the labour force worked 2,200 hours although they were paid for 2,300 hours.
What is the direct labour efficiency variance for the company in 20X3?

• A. $400 (A)

• B. $2,100 (F)

• C. $2.800 (A)

• D. $2,800 (F)

A company expected to produce 200 units of its product, the Bone, in 20X3. In fact, 260
units were produced. The standard labour cost per unit was $70 (10 hours at a rate of $7 per hour). The actual labour cost was $18,600 and the labour force worked 2,200 hours although they were paid for 2,300
hours.
What is the direct labour rate variance for the company in 20X3

• A. $400 (A)

• B. $2,100 (F)

• C. $2.500 (A)

• D. $2,500 (F)

The following details have been extracted from the payables records of Dimo Co:
Invoices paid in the month of purchase: 25%
Invoices paid in the first month after purchase: 70%
Invoices paid in the second month after purchase: 5%
Purchases for September to November are budgeted as follows
September: $250,000
October: $300,000
November: $280,000
For suppliers paid in the month of purchase, a settlement discount of 5% is received. What is the
amount budgeted to be paid to suppliers in November

• A. $278,500

• B. $280,000

• C. $289,000

• D. $292,500

Is the following statement true or false?
"Coordination and allocation of responsibility for the preparation of budgets is one of the functions of the budgets committee"

• True

• False

What should monthly sales volume be to maintain current profit with the sales price of $18 per unit?

• A. 760 units

• B. 423 units

• C. 2,543 units

• D. 6,260 units

is the following statement about CVP analysis true or false?
“CVP analysis is the study of the interrelationships between contribution, volume and profit at various levels of activity”

• True

• False