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Human resource management 11th edition john m ivancevich

25/03/2021 Client: saad24vbs Deadline: 2 Day

ACC 251 Intro to Managerial Accounting Chapters 9 through 12 Test Due Monday, December 11, 2017

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) A major weakness of flexible budgets is that: A) they ignore fixed costs. B) they are valid for only a single level of activity. C) they compare actual costs at one level of activity to budgeted costs at a different level of

activity. D) none of these is a major weakness of flexible budgets.

2) Comparing actual results to a budget based on the actual activity for the period is possible with the use of a:

A) master budget. B) monthly budget. C) rolling budget. D) flexible budget.

3) A static planning budget is: A) used only for fixed costs. B) used when the mix of products does not change. C) a budget that ignores inflation. D) a budget for a single level of activity.

Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $44,580 per month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers. The actual cost for plane operating costs in May was $215,140.

4) The plane operating costs in the planning budget for May would be closest to: A) $206,050 B) $215,140 C) $215,950 D) $208,788

5) Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true?

A) Fixed costs would show unfavorable variances. B) Variable costs would show favorable variances. C) Variable costs would show unfavorable variances. D) Fixed costs would show favorable variances.

1

6) Which of the following comparisons best isolates the impact that changes in operating efficiency have on performance?

A) static planning budget and actual results B) master budget and static planning budget C) static planning budget and flexible budget D) flexible budget and actual results

7) Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,060 patient-visits and the actual level of activity was 1,050 patient-visits. The cost formula for administrative expenses is $3.00 per patient-visit plus $17,000 per month. The actual administrative expense was $19,300. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

A) $220 U B) $850 F C) $30 F D) $880 F

Hairston Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

8) The selling and administrative expenses in the planning budget for November would be closest to: A) $21,104 B) $22,140 C) $22,144 D) $21,049

2

Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

9) The administrative expenses in the planning budget for May would be closest to: A) $7,792 B) $8,136 C) $7,886 D) $8,120

10) Biggs Enterprise's flexible budget cost formula for indirect materials, a variable co

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