61. When preparing a production budget, the required production equals:
a. budgeted sales - desired ending inventory - beginning inventory
b. budgeted sales - desired ending inventory beginning inventory
c. budgeted sales + desired ending inventory + beginning inventory
d. budgeted sales + desired ending inventory - beginning inventory
62. Which of the following is NOT an objective of the budgeting process?
a. To provide a means of allocating resources to those parts of the organization where they can be used most effectively
b. To ensure that the company continues to grow
c. To communicate management's plans throughout the entire organization
d. To uncover potential bottlenecks before they occur
63. Seaman Company has a cash balance of $30,000 on April 1. The company must maintain a minimum cash balance of $24,000. During April, cash receipts of $192,000 are planned. Cash disbursements during the month are expected to total $208,000. Ignoring interest payments, during April the company will need to borrow:
a. $16,000
b. $10,000
c. $24,000
d. $14,000
64. Criteria used to measure customer attitudes towards products and services are:
a. Customers satisfaction
b. Profitability
c. Customer Loyalty
d. All are correct
65. T&M Company has a cost of ordering raw materials of $28 each time and the cost of holding raw materials of $0.28/kg/month. The annual demand for raw materials is 1,350 kg. To minimize inventory-related costs, the optimal quantity of materials that T&M needs to order at a time is:
a. $11,250
b. $519.62
c. $150
d. $42
66. Minh Triet Trading Company determines the optimal order quantity of 320 units of products through the EOQ model. Holding cost for each unit of product is $20/unit/month. The annual product demand is 9,600 units of products. Cost of ordering a consignment that Minh Triet needs to spend:
a. $105.7
b. $400
c. $1280
d. $520
67. The cost of 1 hour for an employee to enter the order information into the system is $42. For customers who place orders manually, the average time for an employee to enter basic customer information is 0.15 hour; In addition, it takes an additional 0.025 hours to enter each line of information related to the order.
Cost of entering the order information for a manually entered order with 10 lines of information related to the order:
a. $16,8
b. $7.35
c. $20
d. $10.5
68. Appraisal costs refer to costs incurred by:
a. Defects of products or services are discovered before delivering to the customer
b. Actions to prevent product and service defects
c. Faulty or damaged products or services have been delivered to customers
d. The activity of checking the quality of a product or service before it is delivered to a customer
69. The estimated quality costs for a company in Sep 20x1 are as follows:
- Depreciation of testing equipment: $250
- Detecting defects of products: $300
- Quality planning $560
- Returned goods $800
- Handling complaints from customers $1,200
- Repairing: $900
- Preventive maintenance of production equipment $800
- Compensation for customers $700
- Check imported raw materials $400
- Product inspection $100
-Training on quality $1,050
The cost of prevention will be equal to:
a. $1,360
b. $1,610
c. $2,410
d. $3,110
70. A budget should/ can do all of the following, except:
a. Become the performance standard against which firms can compare the actual results
b. Be prepared by managers from different functional areas working indepently of each other
c. Be adjusted if new opportunities become available during the year
d. Help management allocate limited resources
a. budgeted sales - desired ending inventory - beginning inventory
b. budgeted sales - desired ending inventory beginning inventory
c. budgeted sales + desired ending inventory + beginning inventory
d. budgeted sales + desired ending inventory - beginning inventory
62. Which of the following is NOT an objective of the budgeting process?
a. To provide a means of allocating resources to those parts of the organization where they can be used most effectively
b. To ensure that the company continues to grow
c. To communicate management's plans throughout the entire organization
d. To uncover potential bottlenecks before they occur
63. Seaman Company has a cash balance of $30,000 on April 1. The company must maintain a minimum cash balance of $24,000. During April, cash receipts of $192,000 are planned. Cash disbursements during the month are expected to total $208,000. Ignoring interest payments, during April the company will need to borrow:
a. $16,000
b. $10,000
c. $24,000
d. $14,000
64. Criteria used to measure customer attitudes towards products and services are:
a. Customers satisfaction
b. Profitability
c. Customer Loyalty
d. All are correct
65. T&M Company has a cost of ordering raw materials of $28 each time and the cost of holding raw materials of $0.28/kg/month. The annual demand for raw materials is 1,350 kg. To minimize inventory-related costs, the optimal quantity of materials that T&M needs to order at a time is:
a. $11,250
b. $519.62
c. $150
d. $42
66. Minh Triet Trading Company determines the optimal order quantity of 320 units of products through the EOQ model. Holding cost for each unit of product is $20/unit/month. The annual product demand is 9,600 units of products. Cost of ordering a consignment that Minh Triet needs to spend:
a. $105.7
b. $400
c. $1280
d. $520
67. The cost of 1 hour for an employee to enter the order information into the system is $42. For customers who place orders manually, the average time for an employee to enter basic customer information is 0.15 hour; In addition, it takes an additional 0.025 hours to enter each line of information related to the order.
Cost of entering the order information for a manually entered order with 10 lines of information related to the order:
a. $16,8
b. $7.35
c. $20
d. $10.5
68. Appraisal costs refer to costs incurred by:
a. Defects of products or services are discovered before delivering to the customer
b. Actions to prevent product and service defects
c. Faulty or damaged products or services have been delivered to customers
d. The activity of checking the quality of a product or service before it is delivered to a customer
69. The estimated quality costs for a company in Sep 20x1 are as follows:
- Depreciation of testing equipment: $250
- Detecting defects of products: $300
- Quality planning $560
- Returned goods $800
- Handling complaints from customers $1,200
- Repairing: $900
- Preventive maintenance of production equipment $800
- Compensation for customers $700
- Check imported raw materials $400
- Product inspection $100
-Training on quality $1,050
The cost of prevention will be equal to:
a. $1,360
b. $1,610
c. $2,410
d. $3,110
70. A budget should/ can do all of the following, except:
a. Become the performance standard against which firms can compare the actual results
b. Be prepared by managers from different functional areas working indepently of each other
c. Be adjusted if new opportunities become available during the year
d. Help management allocate limited resources
