(tco 1) the type of budget that is prepared for the expected

1. (TCO 1) The type of budget that is prepared for the expected capacity level only is called a _______. (Points : 14) A. static budget. B. flexible budget. C.continuous budget. D.master budget.

2. (TCO 2) “Groupthink” is a primary disadvantage of which qualitative forecasting method? (Points : 14) A. Executive opinions B. Sales force polling C. Delphi method D. Consumer surveys

3. (TCO 3) Which of the following is not used to evaluate the accuracy of regression results? (Points : 14) A.Mean absolute deviation B. Coefficient of determination C.Prediction confidence interval D.T-statistic

4. (TCO 4) Which of the following statements regarding the risk associated with R&D activities is incorrect? (Points : 14) A.The amount of time between the R&D activity and the cash flows from the project does not affect risk. B. Greater risk is associated with creating new products than improving existing products. C.Risk increases as the time between the R&D activity and the cash flows from the project increases. D.Assessing risk is a vital part of research and development.

5. (TCO 5) Which of the following is not true of the decision packages used in zero-base budgeting? (Points : 14) A.Decision packages should include alternative methods of performing the activity. B. Decision packages may cross functional and organizational lines. C. Decision packages can be either mutually exclusive or incremental. D. Decision packages may cover either short-term or long-term periods.

6. (TCO 6) A disadvantage of the payback period technique is that it ________. (Points : 14) A. ignores obsolescence factors. B. ignores the cost of an investment. C. is complicated to use. D. ignores the time value of money.

7. (TCO 6) All of the following statements about the accounting rate of return method are correct except that it ________ (Points : 14) A.considers the profitability of a capital expenditure. B. ignores the salvage value of an investment. C. does not consider the time value of money. D. uses income data rather than cash flow data.

 8. (TCO 6) A project that cost $80,000 with a useful life of five years is being considered. Straight-line depreciation is being used and salvage value is $5,000. The project will generate annual cash inflows of $21,375. The accounting rate of return is ______. (Points : 14) A. 26.7% B. 45.5% C. 7.8% D. 18.74%

9. (TCO 6) If an asset costs $210,000 and is expected to have a $30,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $30,000 each year, the payback period is _____. (Points : 14) A. 5 years B. 6 years C. 7 years D. 8 years

10. (TCO 6) Munson Inc. is comparing several alternative capital budgeting projects as shown below: Projects A B C Initial Investment $150,000 $55,000 $95,000 Present value of cash inflows $200,000 $65,000 $100,000 Using the profitability index, rank the projects, starting with the most attractive. (Points : 14) A) A, C, B. B) A, B, C. C) C, A, B. D) C, B, A.

11. (TCO 6) A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $210,000 and is expected to generate cash inflows of $85,000 at the end of each year for four years. The approximate net present value of this project is _______. (Points : 14) A. $59,442 B. $1,387 C. $65,375 D. $5,161

12. (TCO 7) Which of the following is not an operating budget? (Points : 14) A.Selling and administrative expense budget B. Direct materials budget C. Pro forma balance sheet D. Pro forma income statement

13. (TCO 7) Sargent.Com plans to sell 2,000 purple lawn chairs during May, 1,900 in June, and 2,000 during July. The company keeps 15% of the next month’s sales as ending inventory. How many units should Sargent.Com produce during June? (Points : 14) A. 1,915 B. 2,200 C. 1,885 D. Not enough information to determine.

14. (TCO 8) Standards that are based on efficient activity with allowances for unavoidable losses are called _______ (Points : 14) A. basic standards. B. maximum efficiency standards. C. currently attainable standards. D. expected standards.

15. (TCO 9) A static budget is appropriate in evaluating a manager’s performance if _______________. (Points : 14) A. actual activity closely approximates the master budget activity B. actual activity is less than the master budget activity C. the company prepares reports on an annual basis D. the company is a not-for-profit organization

16. (TCO 9) If costs are not responsive to changes in activity level, how are they best described? (Points : 14) A. Mixed B. Flexible C. Variable D, Fixed

17. (TCO 9) Using the high-low method, what is the fixed cost for the following information? Month Miles Total Cost January 80,000 $96,000 February 50,000 $80,000 March 70,000 $94,000 April 90,000 $130,000 (Points : 14) A. $17,500 B. $36,000 C. $14,000 D.$50,000


18. (TCO 10) What do you call a budget report that is prepared to report on unusual events that require immediate attention? (Points : 14) A. Advance report B. Special report C. Unique report D. Progress report

Custom Papers Pro
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.