Question

q1 : The cash budget reflects

expected cash receipts and cash disbursements from all sources.
all revenues and all expenses for a period.
all the items that appear on a budgeted income statement.
all the items that appear on a budgeted balance sheet.

q2 :A major element in budgetary control is

the comparison of actual results with planned objectives.
the valuation of inventories.
the preparation of long-term plans.
approval of the budget by the stockholders.

q3 :A static budget

should not be prepared in a company.
is useful in evaluating a manager’s performance by comparing actual variable costs and planned variable costs.
is changed only if the actual level of activity is different than originally budgeted.
shows planned results at the original budgeted activity level.

q4: If costs are not responsive to changes in activity level, then these costs can be best described as

flexible.
variable.
mixed.
fixed.

q5: The investigation of a materials quantity variance usually begins in the

purchasing department.
sales department.
controller's department.
production department.

q6: An unfavorable labor quantity variance may be caused by

higher pay rates mandated by union contracts.
paying workers higher wages than expected.
misallocation of workers.
worker fatigue or carelessness.

q7: Standard costs may be used by

universities.
governmental agencies.
charitable organizations.
all of these answers are correct.

q8:

The difference between a budget and a standard is that

a budget expresses a total amount, while a standard expresses a unit amount.

a budget expresses management's plans, while a standard reflects what actually happened.

a budget expresses what costs were, while a standard expresses what costs should be.

standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system.

Answer 1

Answer :

1. Option - A, expected cash receipts and cash disbursements from all sources.

Explanation :  A cash budget is a budget, which projects the company's cash position in the future. It is basically estimation of expected cash receipts and disbursements during the period.

2. Option - A, the comparison of actual results with planned objectives

3. Option - D, shows planned results at the original budgeted activity level.

4. Option - D, fixed

5. Option - A, purchasing department.

Explanation : A purchase department is, primary buyer of goods and services in a private sector company, government agency, educational institution or another type of organization.

6. Option - D, worker fatigue or carelessness.

7. Option - D, all of these answers are correct.

8. Option - A, a budget expresses a total amount, while a standard expresses a unit amount.

Explanation : A budget refers to a company's projected revenues, costs, or expenses. On the other hand, A standard refers to a projected cost.