02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Started on Saturday, 1 February 2025, 10:08 PM
State Finished
Completed on Saturday, 1 February 2025, 10:30 PM
Time taken 21 mins 47 secs
Question 1
Correct
Marked out of 1.00
For better management acceptance, the flow of data to be used for budgeting should begin with
a. Accounting department
b. Top management
c. Budget committee
d. Lower levels of management
The correct answer is: Lower levels of management
Question 2
Correct
Marked out of 1.00
Next month’s budgeted sales for ACTI is 18,000 units. Each unit of product ACTI uses 6 kilograms of raw materials. The production and
inventory budgets for June 2022 are as follows:
Opening Inventory Planned Ending Inventory
Raw materials 21,000 kgs. 24,400 kgs.
Finished goods 15,000 units 11,400 units
During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw
materials have been placed in process.
What will the raw material purchases be in June?
a. 89,800 kgs.
b. 99,400 kgs.
c. 96,000 kgs.
d. 98,440 kgs.
The correct answer is: 99,400 kgs.
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 3
Correct
Marked out of 1.00
Swanson plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the
remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the
basis of this information, how many units should Swanson purchase for the quarter ended September 30?
a. 32,150.
b. 33,250
c. 32,950
d. 31,850.
The correct answer is: 32,950
Question 4
Correct
Marked out of 1.00
Telcer & Company had 3,000 units in finished-goods inventory on December 31. The following data are available for the upcoming year:
January February
Units to be produced 9,400 10,200
Desired ending finished-goods inventory 2,500 2,100
The number of units the company expects to sell in January is:
a. 11,900.
b. 9,900
c. 8,900.
d. 9,400.
e. 6,900.
The correct answer is: 9,900
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 5
Correct
Marked out of 1.00
Which one of the following statements regarding the difference between a flexible budget and a static budget is correct?
a. A flexible budget includes only variable costs whereas a static budget includes only fixed costs.
b. A flexible budget provides cost allowances for different levels of activity whereas a static budget provides costs for one level of
activity.
c. A flexible budget primarily is prepared for planning purposes while a static budget is prepared for performance evaluation.
d. A flexible budget is established by operating management while a static budget is determined by top management.
The correct answer is: A flexible budget provides cost allowances for different levels of activity whereas a static budget provides costs for one
level of activity.
Question 6
Correct
Marked out of 1.00
The estimated cost of goods sold would be?
a. P2,275,000
b. P2,205,000
c. P1,750,000
d. P2,325,000
The correct answer is: P2,205,000
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 7
Correct
Marked out of 1.00
Generally speaking, budgets are not used to:
a. create a plan of action.
b. facilitate communication and coordinate activities.
c. assist in the control of profit and operations.
d. evaluate performance.
e. identify a company's most profitable products.
The correct answer is: identify a company's most profitable products.
Question 8
Incorrect
Marked out of 1.00
Vern makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the
first month after sale; and 10% are collected in the second month after sale. If sales for October, November, and December were P70,000,
P60,000, and P50,000, respectively, what was the budgeted receivables balance on December 31?
a. P46,000.
b. P59,000.
c. P40,000
d. P49,000.
The correct answer is: P46,000.
Question 9
Correct
Marked out of 1.00
The budgeting technique that is most likely to motivate managers is
a. Zero-base budgeting.
b. Program budgeting and review technique.
c. Top-down budgeting.
d. Bottom-up budgeting.
The correct answer is: Bottom-up budgeting.
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 10
Correct
Marked out of 1.00
A distinction between forecasting and planning
a. Is not valid because they are synonyms.
b. Is that forecast used in planning
c. Arise because forecasting covers the short term and planning does not.
d. Is that forecasting is a management activity, whereas planning is a technical activity.
The correct answer is: Is that forecast used in planning
Question 11
Correct
Marked out of 1.00
ZUKIYA Company budgeted P148,000 sales on account for June, P120,000 for July, P211,000 for August, P198,000 for September, and
P164,000 for October. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% will be
collected the second month, and 4% will be uncollectible. Which month should have the largest amount of cash receipts from accounts
receivable budgeted?
a. September.
b. November.
c. August.
d. October.
The correct answer is: October.
Question 12
Correct
Marked out of 1.00
Coleman, Inc., anticipates sales of 50,000 units, 48,000 units, and 51,000 units in July, August, and September, respectively. Company policy is
to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units
would the company plan to produce in August?
a. 49,800
b. 46,800.
c. 49,200.
d. 52,200.
The correct answer is: 49,200.
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 13
Correct
Marked out of 1.00
The estimated purchases of raw materials would be?
a. P967,500
b. P697,000
c. P747,500
d. P732,500
The correct answer is: P747,500
Question 14
Incorrect
Marked out of 1.00
A company has budgeted sales for the upcoming quarter as follows:
January February March
Units 15,000 18,000 16,500
The ending finished goods inventory for each month equals 50% of the next month’s budgeted sales. Additionally, three pounds of raw
materials are required for each finished unit produced. The ending raw materials inventory for each month equals 200% of the next month’s
production requirements. If the raw materials cost P4.00 per pound and must be paid for in the month purchased, the budgeted raw materials
purchases (in pesos) for January are?
a. P180,000
b. P207,000
c. P216,000
d. P198,000
The correct answer is: P216,000
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02/02/2025, 11:58 Quiz 6- Budgeting: Attempt review | ACTI
Question 15
Correct
Marked out of 1.00
The foundation of a profit plan is the
a. Cost and expense budget.
b. Production plan.
c. Capital budget.
d. Sales forecast.
The correct answer is: Sales forecast.
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