4 Budgeting for Planning and Control Online Quiz Questions

True or false: A budget is a quantified plan for a future period.

A manufacturer pays for factory utilities and equipment depreciation. Which production-cost category includes these costs?

What budget covers expenses such as sales commissions, advertising, office salaries, and rent?

Which items are relevant when calculating budgeted direct-material purchases? Select all that apply.

True or false: A budget variance is automatically evidence of poor performance.

Which activities are ways managers use budgets for planning and control? Select all that apply.

Which operating budget is usually prepared first because it drives many of the other plans?

A company expects to sell $1{,}500$ units at $\$24$ per unit. What is its budgeted sales revenue?

Planned production is $900$ units. Each unit requires $0.4$ direct labor hours, and the expected wage rate is $\$20$ per hour. What is the budgeted direct labor cost in dollars?

Actual activity differs substantially from the planned level. Which budget can help managers compare expected costs at the actual activity level?

Selling expense includes a commission of $\$3$ per unit sold and fixed monthly expenses of $\$8{,}000$. If the company expects to sell $1{,}200$ units, what is its budgeted selling expense?

Explain how a production budget uses sales and inventory information to determine planned production. Include a calculation for budgeted sales of $1{,}000$ units, desired ending finished-goods inventory of $150$ units, and beginning finished-goods inventory of $100$ units.

A static budget is prepared for one planned activity level.

A manufacturer pays for electricity used to operate its factory. Which production-cost category best classifies this cost?

A business expects to sell $1{,}250$ units at $\$32$ per unit. What is its budgeted sales revenue?

Which operating budget is usually prepared first because its forecast drives many of the other operating plans?

After a period ends, a manager compares actual results with the budget and investigates significant differences. Which budgeting purpose is the manager carrying out?

A manufacturer expects sales of $2{,}400$ units, wants $380$ units in ending finished-goods inventory, and begins with $290$ units. How many units should it plan to produce?