Which of the following statements is true? 1. The direct labor budget begins with the required production in units from the production budget. II. The direct labor budget shows the direct labor-hours required to satisfy the production budget. Multiple Choice O Both statements are true. Neither statement is true. Only statement II is true. Only statement I is true.

Which of the following statements is true? 1. The direct labor budget begins with the required production in units from the production budget. II. The direct labor budget shows the direct labor-hours required to satisfy the production budget. Multiple Choice O Both statements are true. Neither statement is true. Only statement II is true. Only statement I is true.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11MC: Which of the following statements is not correct? A. The sales budget is computed by multiplying...

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Which of the following statements is true? I. The direct labor budget begins with the required production in units from the production budget. II. The direct labor budget shows the direct labor-hours required to satisfy the production budget. Multiple Choice О Neither statement is true. О Only statement II is true. О Only statement I is true. О Both statements are true.
1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…
The Production Budget depends upon information provided by the Revenues Budget. TRUE FALSE
Which of the following is true? a) The direct materials purchases budget is determined from the direct labour budget. b) The only budget providing input into the revenue budget is the sales budget c) The direct materials purchases budget and the capital expenditures budget are both determined from the production budget. d) The selling and administrative expense budget is input into the forecasted cost of goods sold.
To prepare the direct labor budget, the first point to consider is: O a. labor cost per unit. O b. None of the given answers. Oc. budgeted cost of direct materials. O d. budgeted units to produce. O e. budgeted units to sell.
Which of the following is not an operating budget? A. sales budget B. production budget C. direct labor budget D. cash budget
Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
Why is it important to distinguish between variable costs and fixed costs for budgeting purposes?
Which of the following is not an operating budget? a.production budget b.direct labor budget c.sales budget d.cash budget
What assumption is implicitly made about cost behavior when all of the items in a budget areadjusted in proportion to a change in activity? Why is this assumption questionable?
S1: The production budget is prepared in units and in monetary terms. S2: The direct materials purchase budget is based on the sales budget. a. Both statements are true. b. Only statement 1 is true. c. Only statement 2 is true. d. Both statements are false.
Accounting systems that use standards for product costs are called budgeted cost systems. True False