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NEW QUESTION 43
Which one of the following is not considered to be a Benefit of participative budgeting?

• A. individuals at all organizational levels are recognized as being pan of the team resulting in greater support of the budget
• B. When managers set the final targets for the budget, it reduces top management's concerns about the profitability of operations
• C. Managers are held responsible for reaching their goals and cannot shift responsibility by blaming the unrealistic goals demanded by the budget.
• D. Budget estimates are prepared by those in direct contact with various activities

Answer: B

NEW QUESTION 44
Anatolian Textile Company produces blue-jean pants for a globally known blue-jean brand and its annual financial results are shown below.

Based on the table the sales-price variance for the company is

• A. €4,500 unfavorable
• B. €10,500 unfavorable
• C. €10,500 favorable
• D. €4,500 favorable

Answer: C

NEW QUESTION 45
The master budget for a company contains me following production requirements.
Quarter 1- 50,000 units
Quarter 2 - 55,000 units
Quarter 3 - 45,000 units
Quarter 4 - 52,000 units
Each unit of product requires four pounds of direct material. The company has a policy to begin each quarter with an inventory of aired materials equal to 20% of that quarter's direct material requirements The budgeted direct mate da I purchases for the third quarter would be

• A. 41,400 pounds
• B. 49, 400 pounds
• C. 36, 000 pounds
• D. 185, 600 pounds

Answer: D

NEW QUESTION 46
Which one of the following represents a temporary difference under U.S GAAP?

• A. Accrued liabilities
• B. Fines and expenses resulting from violation of the law
• C. Percentage depletion of natural resources
• D. interest received in municipal bonds

Answer: A

NEW QUESTION 47
A company expects sales of 225 000 units in April, 210 000 in May and 190 000 in June. The company maintains an ending Inventory each month of 25% of the next month's sales.
How many units should the company plan to produce in May?

• A. 215.000 units
• B. 221,250 units
• C. 210,000 units
• D. 205,000 units.

Answer: D

NEW QUESTION 48
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