Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
The budget or schedule that provides the required data for the preparation of the direct materials budget is the:
A)schedule of cash collections.
B)raw materials purchases budget.
C)production budget.
D)cash budget.
2
Fifty percent of the Griffith Company's sales are for cash; the rest are on credit. Seventy percent of the credit sales are collected in the month of sale, twenty percent in the month following sale, and five percent in the second month following sale. The remaining credit sales are expected to be uncollectible. The company's sales budget for the year included budgeted sales of $140,000 in January, $120,000 in February, and $160,000 in March. Total cash receipts in March would be budgeted to be:
A)$56,000.
B)$136,000.
C)$151,500.
D)$167,000.
3
Benchmark Manufacturing Company plans to sell 48,000 units during the month. If the company has 10,000 units on hand at the start of the month, and plans to have 8,000 units on hand at the end of the month, how many units must be produced during the month?
A)46,000.
B)48,000.
C)50,000.
D)56,000.
4
The management of Sandburg Company plans to have an inventory at the end of each month equal to 20% of the next month's sales. Budgeted sales in units over the next three months are 80,000 in October, 120,000 in November, and 100,000 in December. Budgeted production for November would be:
A)140,000 units.
B)124,000 units.
C)116,000 units.
D)100,000 units.
5
Harrington Company plans the following beginning and ending inventory levels (in units) for January:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0071088016/634788/ch09q05.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (16.0K)</a>

Two units of raw material are needed to produce each unit of finished product. If the company plans to sell 960,000 units during April, the number of units it would need to manufacture during April would be:
A)1,020,000 units.
B)960,000 units.
C)900,000 units.
D)880,000 units.
6
The Austin Company has budgeted production for next year as follows:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0071088016/634788/ch09q06.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (18.0K)</a>

Five pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 5,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the second quarter would be:
A)320,000 pounds.
B)248,000 pounds.
C)132,000 pounds.
D)49,600 pounds.
7
The River Road Company makes and sells a single product. Each unit of product requires 5.2 hours of labor at a labor rate of $9.10 per hour. The company needs to prepare a Direct Labor Budget for the second quarter of next year. The budgeted direct labor cost per unit of product would be:
A)$28.00.
B)$37.40.
C)$41.60.
D)$47.32.
8
The Delta Company makes and sells a single product. Budgeted sales for April are $1,200,000. Gross margin is budgeted at 30% of sales. If the net income for April is budgeted at $160,000, budgeted selling and administrative expenses must be:
A)$533,332.
B)$408,000.
C)$312,000.
D)$200,000.
9
Lennon Company has a cash balance of $36,000 on April 1. The company is required to maintain a minimum cash balance of $24,000. During April expected cash receipts are $180,000. Expected cash disbursements during the month total $208,000. During April the company will need to borrow:
A)$8,000.
B)$12,000.
C)$16,000.
D)$28,000.
10
Murphy Company uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal shipping costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as:
A)absorption accounting.
B)contribution accounting.
C)operational budgeting.
D)responsibility accounting.





To learn more about the book this website supports, please visit its Information Center.
(c)2012 McGraw-Hill Education Asia
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Education Asia is one of the many fine businesses of The McGraw-Hill Companies.


Managerial AccountingOnline Learning Center

Home > Chapter 10 > Multiple Choice Quiz