Costing - Study Mode
[#66] Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as
Correct Answer
(A) financial budget
Explanation
Solution: Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as financial budget.
[#67] Third step in developing operating budget is
Correct Answer
(C) making predictions about future
Explanation
Solution: Third step in developing operating budget is making predictions about future. An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts.
[#68] Cost influences by responsibility center manager who is considered as
Correct Answer
(D) controllable cost
Explanation
Solution: Cost influences by responsibility center manager who is considered as controllable cost. Controllable costs are those costs that can be altered in the short term. More specifically, a cost is considered to be controllable if the decision to incur it resides with one person.
[#69] If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be
Correct Answer
(B) $35,000
Explanation
Solution: Manufacturing budget = Indirect manufacturing labour + Power cost + Maintenance and supplies = $20000 + $5000 + $10000 = $35,000
[#70] Tender for construction is an
Correct Answer
(B) Estimation of cost