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Homework answers / question archive / If a company has adopted continuous budgeting, the budget will show plans for Which one of the following items would never appear on a cash budget? The following credit sales are budgeted by Crane Company: January $194000 February 240000 March 400000 April 290000 If there were 70000 pounds of raw materials on hand on January 1, 130000 pounds are desired for inventory at January 31, and 590000 pounds are required for January production, how many pounds of raw materials should be purchased in January? Which of the following is not an operating budget? Waterway Industries had average operating assets of $6000000 and sales of $3000000 in 2016
| January | $194000 |
| February | 240000 |
| March | 400000 |
| April |
290000 |
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Your answer is correct. |
If a company has adopted continuous budgeting, the budget will show plans for
| a full year ahead. |
| at least five years. |
| every day. |
|
the current year and the next year. |
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Your answer is correct. |
Which one of the following items would never appear on a cash budget?
| Office salaries expense |
| Travel expense |
| Interest expense |
| Depreciation expense |
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Your answer is correct. |
The following credit sales are budgeted by Crane Company:
| January | $194000 |
| February | 240000 |
| March | 400000 |
| April | 290000 |
The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is
| $289800. |
| $283000. |
| $302200. |
| $343520. |
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Your answer is correct. |
If there were 70000 pounds of raw materials on hand on January 1, 130000 pounds are desired for inventory at January 31, and 590000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
| 720000 pounds |
| 460000 pounds |
| 650000 pounds |
| 530000 pounds |
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Your answer is correct. |
Which of the following is not an operating budget?
| Direct labor budget |
| Cash budget |
| Sales budget |
| Production budget |
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Your answer is correct. |
Waterway Industries had average operating assets of $6000000 and sales of $3000000 in 2016. If the controllable margin was $360000, the ROI was
| 24% |
| 6% |
| 50% |
| 12% |
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Your answer is correct. |
All of the following statements are correct about management by exception except it
| means that top management’s review of a budget report is focused primarily on differences between actual results and planned objectives. |
| enables top management to focus on problem areas that need attention. |
| means that management has to investigate every budget difference. |
| requires that there must be some guidelines for identifying an exception. |
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Your answer is correct. |
Which of the following is not an indirect fixed cost?
| Company personnel department costs. |
| Company president’s salary. |
| Depreciation on the company building housing several profit centers. |
| Profit center supervisory salaries. |
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Your answer is correct. |
If controllable margin is $330000 and the average investment center operating assets are $1100000, the return on investment is
| 33%. |
| 3.33%. |
| 30%. |
| 40%. |
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Your answer is correct. |
In computing ROI, land held for future use
| is important in evaluating the performance of a profit center manager. |
| will hurt the performance measurement of an investment center’s manager. |
| is included in the calculation of operating assets. |
| is considered a nonoperating asset. |
