Questions from Cost Accounting

Q: Cash budgets must be prepared before the operating income budget.” Do

Cash budgets must be prepared before the operating income budget.” Do you agree? Explain.

Q: Strategy, plans, and budgets are unrelated to one another.”

Strategy, plans, and budgets are unrelated to one another.” Do you agree? Explain.

Q: Production managers and marketing managers are like oil and water. They

Production managers and marketing managers are like oil and water. They just don’t mix.” How can a budget assist in reducing conflicts between these two areas?

Q: Define rolling budget. Give an example.

Define rolling budget. Give an example.

Q: Outline the steps in preparing an operating budget.

Outline the steps in preparing an operating budget.

Q: Describe three reasons for an unfavorable direct manufacturing labor efficiency variance.

Describe three reasons for an unfavorable direct manufacturing labor efficiency variance.

Q: How does variance analysis help in continuous improvement?

How does variance analysis help in continuous improvement?

Q: Which of the following is not a primary function of the management

Which of the following is not a primary function of the management accountant? a. Communicates financial results and position to external parties. b. Uses information to develop and implement business...

Q: Why might an analyst examining variances in the production area look beyond

Why might an analyst examining variances in the production area look beyond that business function for explanations of those variances?

Q: Comment on the following statement made by a plant manager: “

Comment on the following statement made by a plant manager: “Meetings with my plant accountant are frustrating. All he wants to do is pin the blame on someone for the many variances he reports.”