ACC 241 EXAM 2 ASU DALLMUS
EXAMINATION TEST 2026 QUESTIONS AND
ANSWERS 100% VERIFIED
⩥ Strategic planning involves setting short-term goals that extend three
to four months into the future. Answer: F
⩥ Budgets are helpful because managers can plan the cash inflows and
outflows in an organization.. Answer: T
⩥ A budget is a quantitative expression of a plan that helps managers
coordinate and implement the plan.. Answer: T
⩥ ) Which of the following alternatives reflects the proper order of
preparing components of the master budget?
1. Production budget
2. Sales budget
3. Direct materials budget
A) 2, 3, 1
B) 1, 3, 2
C) 3, 1, 2
D) 2, 1, 3. Answer: D
,⩥ Which of the following budgets is a major part of the master budget
and it focuses on the income statement and its supporting schedules?
A) cash
B) operating
C) capital expenditures
D) financial. Answer: B
⩥ Which of the following budgets is the cornerstone of the master
budget?
A) sales
B) cash
C) budgeted balance sheet
D) operating expense. Answer: A
⩥ Which of the following terms is useful because it compares "actual"
revenues and expenses against "budgeted" revenues and expenses?
A) Responsibility center
B) Capital budget
C) Performance report
D) Sensitivity analysis. Answer: C
,⩥ When creating the sales budget, management simply takes the sales
from the year before and divides that total by 12 months. Thus, each
month will always predict the same amount of budgeted sales.. Answer:
F
⩥ On the production budget, the number of units to be produced is
computed as
A) unit sales + desired end inventory + beginning inventory.
B) unit sales + desired end inventory - beginning inventory.
C) unit sales - desired end inventory - beginning inventory.
D) unit sales - desired end inventory + beginning inventory.. Answer: B
⩥ On the direct labor budget, the total quantity of direct labor hours
needed is computed as
A) units to be produced × direct labor hour per unit.
B) quantity needed for production + indirect labor hours - direct labor
hours.
C) units to be produced - indirect labor hours × cost per labor hour.
D) estimated direct labor hours needed × cost per hour. Answer: A
⩥ On the direct materials budget, the total quantity of direct materials
needed is computed as
A) quantity needed for production + desired end inventory of DM -
beginning inventory of DM.
, B) units to be produced + desired end inventory of DM - beginning
inventory of DM.
C) units to be produced - desired end inventory of DM + beginning
inventory of DM.
D) quantity needed for production - desired end inventory of DM +
beginning inventory DM.. Answer: A
⩥ The ________ budget is the only budget stated only in units, not
dollars.
A) production
B) sales
C) direct materials
D) manufacturing overhead. Answer: A
⩥ The ________ budget starts with the number of units to be produced.
A) production
B) operating expense
C) direct labor
D) All of these choices start with the number of units to be produced.
Answer: A
⩥ Which of the following budgets usually shows separate sections for
fixed and variable costs?
A) Direct materials and manufacturing overhead budget
EXAMINATION TEST 2026 QUESTIONS AND
ANSWERS 100% VERIFIED
⩥ Strategic planning involves setting short-term goals that extend three
to four months into the future. Answer: F
⩥ Budgets are helpful because managers can plan the cash inflows and
outflows in an organization.. Answer: T
⩥ A budget is a quantitative expression of a plan that helps managers
coordinate and implement the plan.. Answer: T
⩥ ) Which of the following alternatives reflects the proper order of
preparing components of the master budget?
1. Production budget
2. Sales budget
3. Direct materials budget
A) 2, 3, 1
B) 1, 3, 2
C) 3, 1, 2
D) 2, 1, 3. Answer: D
,⩥ Which of the following budgets is a major part of the master budget
and it focuses on the income statement and its supporting schedules?
A) cash
B) operating
C) capital expenditures
D) financial. Answer: B
⩥ Which of the following budgets is the cornerstone of the master
budget?
A) sales
B) cash
C) budgeted balance sheet
D) operating expense. Answer: A
⩥ Which of the following terms is useful because it compares "actual"
revenues and expenses against "budgeted" revenues and expenses?
A) Responsibility center
B) Capital budget
C) Performance report
D) Sensitivity analysis. Answer: C
,⩥ When creating the sales budget, management simply takes the sales
from the year before and divides that total by 12 months. Thus, each
month will always predict the same amount of budgeted sales.. Answer:
F
⩥ On the production budget, the number of units to be produced is
computed as
A) unit sales + desired end inventory + beginning inventory.
B) unit sales + desired end inventory - beginning inventory.
C) unit sales - desired end inventory - beginning inventory.
D) unit sales - desired end inventory + beginning inventory.. Answer: B
⩥ On the direct labor budget, the total quantity of direct labor hours
needed is computed as
A) units to be produced × direct labor hour per unit.
B) quantity needed for production + indirect labor hours - direct labor
hours.
C) units to be produced - indirect labor hours × cost per labor hour.
D) estimated direct labor hours needed × cost per hour. Answer: A
⩥ On the direct materials budget, the total quantity of direct materials
needed is computed as
A) quantity needed for production + desired end inventory of DM -
beginning inventory of DM.
, B) units to be produced + desired end inventory of DM - beginning
inventory of DM.
C) units to be produced - desired end inventory of DM + beginning
inventory of DM.
D) quantity needed for production - desired end inventory of DM +
beginning inventory DM.. Answer: A
⩥ The ________ budget is the only budget stated only in units, not
dollars.
A) production
B) sales
C) direct materials
D) manufacturing overhead. Answer: A
⩥ The ________ budget starts with the number of units to be produced.
A) production
B) operating expense
C) direct labor
D) All of these choices start with the number of units to be produced.
Answer: A
⩥ Which of the following budgets usually shows separate sections for
fixed and variable costs?
A) Direct materials and manufacturing overhead budget
