AC202 Exam #3

A formal statement of future plans, usually expressed in monetary terms, is a:

The process of planning future business actions and expressing them as a formal plan is called:

For budgets to be effective:

Which of the following is a benefit derived from budgeting?

The overall coordinating activity of the budget process is the responsibility of the:

Guidance for preparing a master budget is usually the responsibility of:

The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, adding a new budget each period so that the budgets always cover the same number of future periods, is called:

Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?

Operating budgets include all the following budgets except the:

The master budget includes:

The master budget process usually ends with:

A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

A plan showing the planned sales units and the revenue to be derived from these sales, and is the usual starting point in the budgeting process, is called the:

A quantity of merchandise or materials over the minimum needed that reduces the risk of running short is called:

A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period is called a(n):

A plan that shows the predicted costs for direct materials, direct labor, and overhead to be incurred in manufacturing the units in the production budget is called the:

Standard costs are:

The costs that should be incurred under normal conditions to produce a specific product or component or to perform a specific service are:

The difference between actual and standard cost caused by the difference between the actual price and the standard price is called the:

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:

The difference between the actual cost incurred and the standard cost is called the:

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

Standard costs are used in the calculation of:

An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as:

A planning budget based on a single predicted amount of sales or production volume is called a:

A report based on predicted amounts of revenues and expenses corresponding to the actual level of output is called a

Static budget is another name for:

Variable budget is another name for:

An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity), and which presents the differences between actual and budgeted amounts as variances, is called a(n):

Which department is often responsible for the direct materials price variance?

The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:

The difference between the total budgeted fixed overhead cost and the fixed overhead applied to production using the predetermined overhead rate is the:

Capital budgeting decisions usually involve analysis of:

The process of analyzing alternative investments and deciding which assets to acquire or sell is known as:

Capital budgeting decisions are generally based on

The process of restating future cash flows in today's dollars is known as:

A minimum acceptable rate of return for an investment decision is called the:

An opportunity cost:

The potential benefits of one alternative that are lost by choosing another is known as a(n):

A cost that requires a current and/or future outlay of cash, and is usually an incremental cost, is a(n):

A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n):

An additional cost incurred only if a particular action is taken is a(n):

The break-even time (BET) method is a variation of the:

The calculation of the payback period for an investment when net cash flow is even (equal) is:

The time expected to pass before the net cash flows from an investment would return its initial cost is called the:

After-tax net income divided by the annual average investment in an investment, is the:

The accounting rate of return is calculated as:

An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at an appropriate rate and then subtracting the initial cost of the investment, is known as:

The hurdle rate is often set at:

Capital budgeting decisions usually involve analysis of:

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