US CMA Part 1 Budgeting — practice questions
39 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice US CMA Part 1 Budgeting in the app →What is a budget?How does a continuous budget differ from one that is reviewed and revised once a year?What is the defining limitation of a static budget?Actual costs of $130,000 exceed a static budget of $120,000. Why might that still be a positive outcome?What does a flexible budget provide that a static budget does not?At the 12,000 unit level a flexible budget shows packing materials of $36,000, direct labor of $18,000, variabA flexible budget totals $120,000 at 10,000 units and $130,000 at 12,000 units. Actual costs are $130,000 and In a flexible budget covering 10,000 to 20,000 units, what happens to supervisor salary, depreciation and machWhat is a master budget?The cash budget and the capital expenditures budget are included on which statement?Among the five budgets that support the cost of goods sold budget, which one does not depend on an earlier budWhich budget must be completed before the production budget can be prepared?A company budgets 2,600 bicycle helmets at $50 each and 4,800 ski helmets at $130 each. What is total budgetedA company expects to sell 3,000 statues, wants 600 units in ending inventory and holds 2,600 completed units aSki helmet sales are budgeted at 4,800 units, desired ending inventory is 280 units and beginning inventory isProducing 1,000 statues needs 8.6 pounds of metal each. Desired ending metal is 300 pounds, beginning metal isBicycle helmets need 0.8 pounds of plastic each and ski helmets 1.6 pounds. Production is 2,640 bicycle and 4,Metal on hand January 1 costs $10,800, purchases for the year are $42,600 and metal remaining on December 31 cA company will produce 1,000 statues, each needing 5 hours of direct labor at $10 per hour. What is total budgA company will produce 2,640 bicycle helmets, each needing 0.6 direct labor hours of assembly at $12 per hour.Estimated factory overhead is supervisor salary $7,600, utilities $1,900, indirect materials $1,700 and deprecTotal manufacturing costs for the year are $113,600, work in process on January 1 is $25,100 and work in proceBudgeted cost of goods manufactured is $135,600, finished goods on January 1 are $36,700 and finished goods onBudgeted direct materials are $46,208, direct labor is $124,032 and factory overhead is $73,000. What are totaWork in process on January 1 is 450 bicycle helmets valued at $15 each and 520 ski helmets valued at $70 each.Finished goods on December 31 are 150 bicycle helmets valued at $25 each and 280 ski helmets valued at $93 eacBudgeted selling expenses total $42,400 and budgeted administrative expenses total $104,700. What is the totalBudgeted sales salaries are $129,200, advertising $60,800, travel for selling $6,300 and telephone for sellingBudgeted sales are $600,000, cost of goods sold $162,900, selling and administrative expenses $147,100 and theBudgeted gross profit is $490,460, selling and administrative expenses are $228,100 and the tax rate is 25%. WWhat does the cash budget estimate?January sales are $68,000, of which 20% are for cash and the rest on account, and 40% of sales on account are In March a company collects $24,800 of cash sales, $39,680 from March sales on account, $36,000 from February A company pays 30% of purchases in cash and 60% of purchases on account in the month of purchase. January purcMarch cash payments are $18,600 for cash purchases, $26,040 for March purchases on account, $9,450 for FebruarJanuary estimated cash receipts are $118,000, including $50,000 from issuing stock, and estimated cash paymentWhat does a capital expenditure budget list?A capital expenditures budget for 2021 lists cutting machinery $18,000, assembly machinery $43,000, a deliveryHow should budget figures be understood once the period they cover has ended?