Costing - Study Mode

[#1106] Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as
Correct Answer

(B) responsibility accounting

Explanation

Solution: Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.

[#1107] Cash receipts is added in to beginning cash balance to calculate
Correct Answer

(B) total cash available

Explanation

Solution: Cash receipts is added in to beginning cash balance to calculate total cash available. A cash receipt is a printed statement of the amount of cash received in a cash sale transaction.

[#1108] If budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be
Correct Answer

(B) 4000 units

Explanation

Solution: Budget production = Budget sales + Ending inventory - Beginning inventory = 2000 + 3000 - 1000 = 4000 units.

[#1109] Direct labour and salary outlays direct material purchases, which are classified as
Correct Answer

(B) cash disbursements

Explanation

Solution: Direct labour and salary outlays direct material purchases, which are classified as cash disbursements. Cash disbursements, also called cash payments, in accounting refer to payments made by a company during a specified period, such as quarter or year.

[#1110] Master budget includes all projections of company's budget and focuses on
Correct Answer

(D) both B and C

Explanation

Solution: Master budget includes all projections of company's budget and focuses on marketing plan and financial plan.