Question

True and false questions

1. Contribution margin plus variable cost will equal revenue?

2. Capital budgets are used for the budgeting of large expensive expenditures?

3. Ending inventory in a purchases budget is based on next months forecasted sales?

4. Only manufacturing companies can use job order cost accounting?

5. Unfavorable and favorable variances are both investigated?

6. Break-even is the point at which a company achieves its target profit?

7. Contribution margin and gross margin are the same thing?

8 A budget is a plan for the future in monetary terms?

9.Direct material costs are estimated in a job order cost accounting system?

10.Operating budgets result in the Balance Sheet?

11.Management accounting is for both insiders and outsiders?

12. A cash budget includes depreciation expense?

13.Fixed costs per unit will vary with volume?

14.Revenue variances are normally favorable and expense variances are normally unfavorable?

15.Financial budgets result in your Income Statement?

16.COGS budgets are the first budgets to be prepared?

17.In decision making reliable costs are those costs that make a difference in the future?

18.Beginning inventory is normally calculated as a % of next months forecasted sales?

19. Scrap value of your old machine is important in make or buy related decisions?

20.Flexible budgets replace the master budget?

Answer 1

1. True

2. True

3. False

4. True

5. True

6. False

7. False

8. True

9. True

10. False

11. False

12. False

13. True

14. False

15. True

16. False

17. True

18. False

19. False

20. False