This is the length of time it takes to initiate and complete a finished product.O a. Fiscal yearO b. Accounting yearc. Production cycleOd. Short-termQUESTION 21Costs that remain constant even with changes in production level.O a. Variable costsO b. Start-up costsO c. Semi-variable costsO d. Fixed costsQUESTION 22The challenge of budgeting is to determine what will change and what will stay the same.O TrueFalseQUESTION 23The numbers on tax returns (cash basis) are the same as the number we use to manage a department (accrual basis).O TrueO FalseQUESTION 24A pattern of change over several time periods which can help us make estimates for the future isa. a gap.Ob. a fixed cost.Oc. a transformation.d. a trend.

Due to multiple questions, only the first question is solved as per our protocol.Costs are having…

This is the length of time it takes to initiate and complete a finished product. O a. Fiscal year O b. Accounting year c. Production cycle Od. Short-term QUESTION 21 Costs that remain constant even with changes in production level. O a. Variable costs O b. Start-up costs O c. Semi-variable costs O d. Fixed costs

This is the length of time it takes to initiate and complete a finished product. O a. Fiscal year O b. Accounting year c. Production cycle Od. Short-term QUESTION 21 Costs that remain constant even with changes in production level. O a. Variable costs O b. Start-up costs O c. Semi-variable costs O d. Fixed costs

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 29BEB: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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A company uses two major material inputs in its production. To prepare its manufacturing operations budget, the company has to project the cost changes of these material inputs. The cost changes are independent of one another. The purchasing department provides the following probabilities associated with projected cost changes. Cost Change Material 1 Material 2 3% increase 0.3 0.5 5% increase 0.5 0.4 10% increase 0.2 0.1 The probability that there will be a 3% increase in the cost of both Material 1 and Material 2 is (E) a. 15% O b. 20% O c. 80% O d. 40%
Why is it relevant to calculate the fixed cost budget? Management must account for these fixed costs as part of their monthly expenses. Management usually forecast the fixed costs based on past financial records and take into account potential rate increase of these fixed costs on a monthly basis. Without budgeting fixed cost into the income statement, you won’t be able to calculate the net profit. All the above.
A flexible budget ( check all that apply): a. Separates variable costs from fixed costs b. Shows reevenues and expenses for varous levels of sales volume c. Reports variable costs on a per unit basis d. Reports fixed costs on a oer unit basis
The sales budget is based on assumptions about the ______? A. No. of units to be sold and selling price per unit. B. Timing of cash receipts C. Contribution margin per unit and the number of units to be sold D. Costs of the unit produced and the total fixed costs
1. Prepare a performance report that compares static budget and actual costs for the period just ended (i.e., the report that Kellerman likely used when assessing his performance
1.Using a flexible budget, actual results can be compared to what costs should have been at the actual level of activity. True or False 2.Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. True or False 3.Actual costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets. True or False 4.If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected. True or False
Management Accounting Question (Qualitative Short Answer) a. Why is the sales forecast the starting point in budgeting? b. What is a perpetual budget? c. Which is a better basis for evaluating actual results: budgeted performance or past performance? Why? d. The materials price variance can be computed at what two different points in time? Which point is better and why? e. What effect, if any, would you expect purchasing poor-quality materials to have on direct labor variances? f. Distinguish between ideal and practical standards. g. Costs associated with the quality of conformance can be broken down into four broad groups. What are these four groups and how do they differ? h. What is likely the most effective way to reduce a company's total quality costs? i. What are the three main uses of quality cost reports?
Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost accounting? and What are the relevant costs related for each term. Does short-term mean a period less than a year? And long-run, a period more than a year?
Estimating the effects of changes in budget assumptions, such as determining the impact of an increase or decrease in sales, is called: Question 4 options: static budget analysis. sensitivity analysis. variance analysis, cost reduction analysis. (Ch 10) An advantage of a flexible budget is that it: Question 5 options: allows comparison of actual costs to master (static) budget costs. considers only variable costs. allows comparisons of actual costs to the costs that should have been incurred, given the level of sales. allows management freedom in meeting profitability goals.
In budgeting direct labor hours for the coming year, it is important to: * A. multiply production in units by the direct labor hours per unit B. divide production in units by the direct labor hours per unit C. subtract production in units from the direct labor hours per unit D. subtract direct labor hours per unit from production in units
What is a standard cost? Group of answer choices The total number of units times the budgeted amount expected Any amount that appears on a budget The total amount that appears on the budget for product costs The amount management thinks should be incurred to produce a good or service
When constructing the production budget, the desired ending inventory for the period is determined based on? A. Next period sales B. Next period production C. Last period production & sales D. Credit period