5) As the sales volume increases in the relevant range, variable costs per unit

Question

5) As the sales volume increases in the relevant range, variable costs per unit variable costs but total a. do not change; increase b. do not change; decrease c. increase; do not change d. decrease; do not change 6) If unit outputs exceed the breakeven point a. there is a loss. b. total sales revenue exceeds total costs. c. there is a profit. d. then both (b) and (c) are correct. 7) A good budgeting system forces managers to examine the business as they plan, so they can a. detect inaccurate historical records. b. set specific expectations against which actual results can be compared. c. complete the budgeting task on time. d. get promoted for doing a good job. 8) The budgeting process is MOST strongly influenced by a. the capital budget. b. the budgeted statement of cash flows c. the sales forecast. d. the production budget. 9) A major benefit of effective budgeting is that a. it compels managers to think ahead b. it aids managers in communicating objectives to employees C, it provides benchmarks to evaluate subsequent performance d. all of the above 10) Design of an ABC system requires a. that the job bid process be redesigned. b. that a cause-and-effect effect relationship exists between resource costs and individual between activities c. an adjustment to product mix d. both (b) and (c).

Explanation / Answer

Ans. (5) As the sales volume increase in the relevant range, variable costs per unit do not change but total variable costs increase

So (A) is correct answer

Ans. (6) If unit outputs exceed the breakeven point thare is a profit

So (B) is correct answer

Ans. (7) A good budgeting system forces managers to examine the business as they plan, so they can set specific expectations against which actual results can be compared.

So (B) is correct answer

Ans. (8) The budgeting process is MOST strongly influenced by the sales forecast

So (C) is correct answer

Ans (9) A major benefit of effective budgeting is that all of the above geven below

it compels managers to think ahead, it aids managers in communicating objectives to employees

and it provides benchmarks to evaluate subsequent performance

So (D) is correct answer

Ans (10) Design of an ABC system requires that a cause-and-effect relationship exists between resource costs and individual activities

So (B) is correct answer

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