ACCT 526 Final ULL EXAM
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
relevant costing analyses that focus on whether a specially priced order should be accepted or
rejected. - CORRECT ANSWER-special order decisions
the point at which products become distinguishable after passing through a common process. -
CORRECT ANSWER-split off point
a plan that plots a direction for an organization's future activities and operations; it generally
covers at least 5 years. The overall strategy is then translated into the long- and short-term
objectives that form the basis of the budget. - CORRECT ANSWER-strategic plan
costs for which the outlay has already been made and that cannot be affected by a future
decision. - CORRECT ANSWER-sunk cost
the difference between the sales price needed to achieve a projected market share and the
desired per-unit profit. - CORRECT ANSWER-target cost
a method of determining the cost of a product or service based on the price (target price) that
customers are willing to pay. - CORRECT ANSWER-target costing
the group that reviews the budget, provides policy guidelines and policy goals, resolves
differences that arise as the budget is prepared, approves the final budget, and monitors the
,actual performance of the organization as the year unfolds. - CORRECT ANSWER-budget
committee
typically the controller, this is the person responsible for directing and coordinating the
organization's overall budgeting process. - CORRECT ANSWER-budget director
padding the budget, occurs when a manager deliberately underestimates revenues or
overestimates costs in order to make budgeted expectations more easily achievable in the
future. - CORRECT ANSWER-budgetary slack
a budget that shows budgeted cash inflows and outflows for the time period so that managers
can determine any expected cash excess or deficiency. - CORRECT ANSWER-cash budget
costs whose level a manager can influence or control. - CORRECT ANSWER-controllable costs
a budget that shows the expected production cost of the units budgeted to be sold during the
period. - CORRECT ANSWER-COGS budget
the budget showing the expected number of direct labor hours to be worked and the total cost
of direct labor for the budget period. - CORRECT ANSWER-direct labor budget
a budget that shows the amount and cost of every type of raw material to be purchased in each
time period. - CORRECT ANSWER-direct materials purchases budget
individual behavior that is in basic conflict with the goals of the organization. - CORRECT
ANSWER-dysfunctional behavior
budget that shows the cost of units budgeted to be in ending finished good inventory. -
CORRECT ANSWER-ending finished goods inventory budget
, budgets that detail the inflows and outflows of cash and the overall financial position of the
firm. - CORRECT ANSWER-financial budgets
budget that shows expected costs for a particular activity level. A before-the-fact flexible budget
gives expected costs for a range of activity levels. An after-the-fact flexible budget gives
expected costs for the actual level of activity. - CORRECT ANSWER-flexible (variable) budgets
the difference between the budgeted costs and actual costs for the chosen level of activity. -
CORRECT ANSWER-flexible budget variance
the alignment of managerial and organizational goals. - CORRECT ANSWER-goal congruence
monetary rewards used to control a manager's tendency to shirk and waste resources by tying
budgetary performance to salary increases, bonuses, and promotions. - CORRECT ANSWER-
monetary incentives
when a manager takes actions that improve budgetary performance in the short run but bring
long-run harm to the firm. - CORRECT ANSWER-myopic behavior
rewards that include job enrichment, increased responsibility and autonomy, and recognition
programs. - CORRECT ANSWER-non-monetary incentives
budgets that describe the income-generating activities of a firm, sales, production, and finished
goods inventories, ending with the budgeted income statement. - CORRECT ANSWER-operating
budgets
a budget that shows the expected cost of all production costs other than direct materials and
direct labor. - CORRECT ANSWER-overhead budget
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
relevant costing analyses that focus on whether a specially priced order should be accepted or
rejected. - CORRECT ANSWER-special order decisions
the point at which products become distinguishable after passing through a common process. -
CORRECT ANSWER-split off point
a plan that plots a direction for an organization's future activities and operations; it generally
covers at least 5 years. The overall strategy is then translated into the long- and short-term
objectives that form the basis of the budget. - CORRECT ANSWER-strategic plan
costs for which the outlay has already been made and that cannot be affected by a future
decision. - CORRECT ANSWER-sunk cost
the difference between the sales price needed to achieve a projected market share and the
desired per-unit profit. - CORRECT ANSWER-target cost
a method of determining the cost of a product or service based on the price (target price) that
customers are willing to pay. - CORRECT ANSWER-target costing
the group that reviews the budget, provides policy guidelines and policy goals, resolves
differences that arise as the budget is prepared, approves the final budget, and monitors the
,actual performance of the organization as the year unfolds. - CORRECT ANSWER-budget
committee
typically the controller, this is the person responsible for directing and coordinating the
organization's overall budgeting process. - CORRECT ANSWER-budget director
padding the budget, occurs when a manager deliberately underestimates revenues or
overestimates costs in order to make budgeted expectations more easily achievable in the
future. - CORRECT ANSWER-budgetary slack
a budget that shows budgeted cash inflows and outflows for the time period so that managers
can determine any expected cash excess or deficiency. - CORRECT ANSWER-cash budget
costs whose level a manager can influence or control. - CORRECT ANSWER-controllable costs
a budget that shows the expected production cost of the units budgeted to be sold during the
period. - CORRECT ANSWER-COGS budget
the budget showing the expected number of direct labor hours to be worked and the total cost
of direct labor for the budget period. - CORRECT ANSWER-direct labor budget
a budget that shows the amount and cost of every type of raw material to be purchased in each
time period. - CORRECT ANSWER-direct materials purchases budget
individual behavior that is in basic conflict with the goals of the organization. - CORRECT
ANSWER-dysfunctional behavior
budget that shows the cost of units budgeted to be in ending finished good inventory. -
CORRECT ANSWER-ending finished goods inventory budget
, budgets that detail the inflows and outflows of cash and the overall financial position of the
firm. - CORRECT ANSWER-financial budgets
budget that shows expected costs for a particular activity level. A before-the-fact flexible budget
gives expected costs for a range of activity levels. An after-the-fact flexible budget gives
expected costs for the actual level of activity. - CORRECT ANSWER-flexible (variable) budgets
the difference between the budgeted costs and actual costs for the chosen level of activity. -
CORRECT ANSWER-flexible budget variance
the alignment of managerial and organizational goals. - CORRECT ANSWER-goal congruence
monetary rewards used to control a manager's tendency to shirk and waste resources by tying
budgetary performance to salary increases, bonuses, and promotions. - CORRECT ANSWER-
monetary incentives
when a manager takes actions that improve budgetary performance in the short run but bring
long-run harm to the firm. - CORRECT ANSWER-myopic behavior
rewards that include job enrichment, increased responsibility and autonomy, and recognition
programs. - CORRECT ANSWER-non-monetary incentives
budgets that describe the income-generating activities of a firm, sales, production, and finished
goods inventories, ending with the budgeted income statement. - CORRECT ANSWER-operating
budgets
a budget that shows the expected cost of all production costs other than direct materials and
direct labor. - CORRECT ANSWER-overhead budget
