Zin, Inc. is planning its cash needs for an upcoming period when 85,000 machine hours are expected to be worked. Activity may drop as low as 78,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 94,000 hours if one of Zin's major competitors likely goes bankrupt. A flexible cash budget to determine cash needs would best be based on:
a. 78,000 hours.
b. 85,000 hours.
c. 94,000 hours.
d. 78,000 hours and 94,000 hours.
e. 78,000 hours, 85,000 hours, and 94,000 hours.
a. focuses only on historical data
b. is governed by GAAP
c. focuses primarily on the needs of personnel within the organization
d. provides information for parties external to the organization
e. focuses on financial statements and other financial report
a. is unregulated
b. produces information that is useful only for manufacturing organizations
c. is based exclusively on historical data
d. is regulated by the Securities and Exchange Commission (SEC)
e. generally focuses on reporting information about the enterprise in its entirety rather than by subunits.
Which of the following statements is/are correct concerning the application of overhead in a standard costing system driven by process hours?
a. A predetermined overhead rate is allowed only for fixed overhead.
b. Overhead application is based on standard process hours allowed.
c. Overhead application is based on actual process hours incurred.
d. Only prime costs are considered to be product costs in a standard costing system.
e. Only variable overhead costs are applied to production.
Which of the following characteristic(s) relate(s) more to managerial accounting than to financial accounting?
a. A focus on reporting to personnel within an organization
b. A focus on reporting to external parties
c. An area of accounting that is heavily regulated
d. A focus on providing information that is relevant for planning, decision making, directing, and control
e. Choices “A” and “D” above