MULTIPLE CHOICE…Choose the right answer1) When reconciling variable costing and absorption costing...

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MULTIPLE CHOICE…Choose the right answer1) When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs released from inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income- True-False2). A problem with participative budgeting is that there will always be a tendency for those participating to build slack into the budget to ensure a better outcome for their performance assessment.
	
Document Preview: MULTIPLE CHOICE…Choose the right answer1) When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs released from inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income- True-False2). A problem with participative budgeting is that there will always be a tendency for those participating to build slack into the budget to ensure a better outcome for their performance assessment. Answer-True-False3) The position where the firm's goals and employees' aims coincide is called: Answer-participative budgeting-goal achievement-goal congruence- budgetary achievement4)For a manufacturing business, a production budget, including budgets for direct material, direct labour and manufacturing overhead are part of the: Answer -sales budgets- operating budgets- budgeted financial statements-budgeted balance sheets6) Net operating income computed using variable costing would exceed net operating income computed using absorption costing if: Answer -units sold exceed units produced.-units sold are less than units produced.- units sold equal units produced.- the average fixed cost per unit is zero.7)Top-down budgeting refers to: Answer -a budgeting system that begins with sales forecasts and works downwards to the raw materials budget -a budgeting systems that begins with budgeting the facility-level costs-a budgeting system where senior managers impose budget targets on junior managers -a budgeting system where there are frequent communications between top and bottom managers.8) Which of the following statements on flexible budgets is false? Answer -It enables companies to control overhead costs-It can be used to calculate direct material and direct labor variances.- It is the same as a static budget.-It provides a useful basis for comparison between actual and expected costs for a given...

Robert · Accepted Answer

MULTIPLE CHOICE…Choose the right answer 
1) When reconciling variable costing and absorption costing net operating income, fixed manufacturing 
overhead costs released from inventory under absorption costing should be deducted from variable 
costing net operating income to arrive at the absorption costing net operating income 
- True 
2). A problem with participative budgeting is that there will always be a tendency for those participating 
to build slack into the budget to ensure a better outcome for their performance assessment. 
 Answer 
-True 
3) The position where the firm's goals and employees' aims coincide is called: 
 Answer 
-goal congruence 
4)For a manufacturing business, a production budget, including budgets for direct material, direct labor 
and manufacturing overhead are part of the: 
 Answer  
- operating budgets 
6) Net operating income computed using variable costing would exceed net operating income computed 
using absorption costing if: 
 Answer  
-units sold exceed units produced. 
7)Top-down budgeting refers to: 
 Answer  
-a budgeting system where senior managers impose budget targets on junior managers 
8) Which of the following statements on flexible budgets is false? 
 Answer  
- It is the same as a static budget.
9) If an organisation were more focused on outputs rather than inputs, they would be advised to use 
program budgeting as opposed to other alternatives. 
 Answer  
-False 
10) The costs assigned to units in inventory are typically lower under absorption costing than under 
variable costing.

MULTIPLE CHOICE…Choose the right answer1) When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs released from inventory under absorption...

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