Question 1

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

Options :

A : Managers are held responsible for reaching their goals and cannot shift responsibility by blaming the unrealistic goals demanded by the budget.

B : Budget estimates are prepared by those in direct contact with various activities

C :

individuals at all organizational levels are recognized as being pan of the team resulting in greater

support of the budget

D :

When managers set the final targets for the budget, it reduces top management-s concerns about the

profitability of operations

Answer: D

Question 2

Collins Corporation manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause the least concern would be a

Options :

A : 6% unfavorable fixed overhead volume variance caused by work stoppages because of missing parts

B : 9% unfavorable material price variance caused by changing to a supplier that would support the company-s just-in-time needs.

C : 30% unfavorable direct labor efficiency variance caused by idle time while waiting for goods to be received from a previous manufacturing department

D : 12% unfavorable variable overhead spending variance caused by keeping equipment running during times when there is no production activity

Answer: B

Question 3

Faxton and Rexford are competitor in the same industry Faxton utilizes an incentive program mat focuses

solely on net income Rexford uses customer service and employee development in addition to net income in

its incentive program. Over time. Faxton can be expected to

Options :

A : have higher sales growth than Rexford due to management s strong focus

B : be less likely to misstate earnings due to the importance of earnings to management

C : be more profitable than Rexford initially Put lose this advantage

D : consistently be more profitable than Rexford due to not funding training programs

Answer: B

Question 4

Which oneof the following best describes the difference between a normal costing system and an actual costing system?

Options :

A : Direct labor cost is estimated using a predetermined rate under a normal costing system, while it is the actual value under an actual costing system.

B : Direct material cost is estimated using a predetermined rate under a normal costing system while it is the actual value under an actual costing system

C : Factory overhead cost is estimated using a predetermined rate under a normal costing system,while it is me actual value under an actual costing system.

D : Both direct labor cost and direct material cost are estimated using a predetermined rate under a normal costing system, while they are the actual value under an actual costing system

Answer: C

Question 5

Which one of the following statements best defines datagovernance?

Options :

A : Procedures implemented by the board of directors to manage data.

B : A framework used to oversee the availability, usability and integrity of data

C : The company-s framework for supervising and managing the IT function

D : The corporate records retention policy setting out the contents of the system data records

Answer: C