This document provides a quiz with 30 multiple choice questions about budgeting and cost accounting concepts from Chapter 6. It covers topics like the differences between operating and financing decisions in a master budget, types of budgets, budget preparation steps, and how budgets can help with planning and performance management. The questions are part of an ACC350 class and purchasing the full tutorial provides access to additional practice questions.

1. ACC350 WK 7 Quiz5 Chapter6
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1)
Fewbusinessesplantofail,butmanyof those that don'tsucceedhave failedtoplan.
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2)
The master budgetreflectsthe impactof operatingdecisions,butnotfinancingdecisions.
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3)
Budgetedfinancialstatementsare alsoreferredtoaspro formastatements.
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4)
Budgetingincludesonlythe financial aspectsof the planandnotany nonfinancial aspectssuchasthe
numberof physical unitsmanufactured.
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5)
Budgetinghelpsmanagementanticipateandadjustfortrouble spotsinadvance.
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6)
Budgetscan playbothplanningandcontrol rolesformanagement.
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2. 7)
Long-runplanningandshort-runplanningare bestperformedindependentlyof eachother.
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8)
Operatingdecisionsdeal withhowtobestuse the limitedresourcesof anorganization.
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9)
Investingdecisionsdeal withhowtoobtainthe fundstoacquire resources.
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10)
Budgetedfinancialstatementsare calledproformastatements.
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11)
Aftera budgetisagreeduponand finalizedbythe managementteam, the amountsshouldnotbe
changedfor anyreason.
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12)
Evenin the face of changingconditions,attainingthe original budgetiscritical.
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13)
Lower-level managerswillnotactivelyparticipate inthe budgetprocessif theyperceiveupper

3. managementdoesnotbelieveinthe process.
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14)
A four-quarterrollingbudgetencouragesmanagementtobe thinkingaboutthe next12 months.
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15)
A rollingbudgetisthe same asa continuousbudget.
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16)
Researchhasshownthat challengingbudgets(ratherthanbudgetsthatcanbe easilyattained) are
energizingandimproveperformance.
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17)
The revenue budgetandthe budgetedincomestatementare usedtoprepare the budgetedbalance
sheetandthe budgetedstatementof cashflows.
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18)
It isbestto compare thisyear's performance withlastyear'sactual performance ratherthanthisyear's
budget.
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19)
Whenadministeredwisely,budgetspromotecommunicationandcoordinationamong the various
subunitsof the organization.
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4. 20)
Preparationof the budgetedincome statementisthe final stepinpreparingthe operatingbudget.
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21)
The salesforecastshouldprimarilybe basedonstatistical analysiswithsecondaryinputfromsales
managersand salesrepresentatives.
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22)
The usual startingpointin budgetingistoforecastnetincome.
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23)
The revenuesbudgetshouldbe basedonthe productionbudget.
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24)
The operatingbudgetisthatpart of the masterbudgetthat includesthe capital expendituresbudget,
cash budget,budgetedbalancesheet,andthe budgetedstatementof cashflows.
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25)
Since fixedmanufacturingoverheadisfixed,itisnotnormallyincludedinthe operatingbudget.
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26)

5. The manufacturinglaborbudgetdependsonwage rates,productionmethods,andhiringplans.
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27)
The manufacturinglaborbudgetdependsonwage rates,productionmethods,andhiringplans.
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28)
If inventoriable costsinthe operatingbudgetare goingtobe inaccordance withGenerallyAccepted
AccountingPrinciples(GAAP),theyincludeonlyvariable manufacturingcosts.
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29)
Activity-basedbudgetingprovidesbetterdecision-makinginformation thanbudgetingbasedsolelyon
output-basedcostdrivers(unitsproduced,unitssold,orrevenues).
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30)
Activity-basedcostinganalysistakesalong-runperspective andtreatsall activitycostsasvariable costs.
Answer:
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assignment1Cost AccountingandManagementDecisions