ACC 227 ACC227 Module 4 Check Your Understanding Answers (AAU Online)

1.Characteristics of good personal budgeters include: 

2.Research has shown that several behavioral factors determine how successful the budgeting process will be, these include: 

3.To ensure that a budget is most likely to integrate the goals of the segments of a company, management should make sure that the company’s budgeting: 

4.Another term for participative budgeting is: 

5.In a manufacturing firm, the master budget begins with a forecast of: 

6.To examine management’s goals and plans for revenues, production, expenses, and cash, the budget you would most likely examine is the: 

7.The factors that must be considered in preparing a production budget are: 

8.The direct materials budget is usually expressed in terms of: 

9.If Blanchard Company plans to sell 1,000 calculators during the month of October, has 150 calculators on hand on October 1, and wants to maintain an inventory at month-end of 120 calculators, how any calculators must Blanchard Company produce during October?

10.What two things is a production manager responsible for controlling?

11.Which type of center is usually found at the highest levels in a firm?

12.Decentralization refers to the concept of having decision-making authority in the hands of: 

13.A variance should be investigated when: 

14.A materials quantity variance is favorable when: 

15.Mossyrock Manufacturing Company established the standard labor rate as $11.20 and the standard hours as 200 labor hours.  During June, 205 actual labor hours were incurred at a rate of $11.40 per hour.  The labor rate variance is: 

16.The type of responsibility center that is best measured by a segment-margin statement is a(n): 

17.The variance computed by multiplying the difference between the expected quantity sold by the expected or standard price is the: 

18.The type of responsibility center that would be measured by residual income is a(n): 

19.Broomfield Company, which has total assets of $200,000, has an opportunity to invest $200,000 in a new project that will generate $32,000 in net income.  Given this information, what is the return on this investment?

20.Variable manufacturing overhead includes which type of costs?