• Question 4 Birney Company is planning its advertising campaign for 2012 and has prepared the following budget data based on a zero advertising expenditure :
• Question 5 The cash receipts budget includes
• Question 6 Breakeven analysis assumes over the relevant range that
• Question 7 An increase in production levels within a relevant range most likely would result in
• Question 8 The process of developing plans for a company ’ s expected operations and controlling the operations to help carry out those plans is known as
• Question 9 Sussex Company has budgeted its operations for February 2012 . No change in inventory level during the month is planned . Selected data from estimated amounts are as follows :
• Question 10 A company is attempting to determine if there is a cause and effect relationship between scrap value and output produced . The following exhibit presents the company ’ s scrap data for the last fiscal year :
• Question 11 A professional organization is planning to conduct a series of one-day continuing education programs in various cities . The projected costs related to these programs are
• Question 12 A company wants to determine its marketing costs for budgeting purposes . Activity measures and costs incurred for four months of the current year are presented in the table below . Advertising is considered to be a discretionary cost . Salespersons are paid monthly salaries plus commissions . The sales force was increased from 20 to 21 individuals during the month of May .
• Question 13 Ajax Division of Carlyle Corporation produces electric motors , 20 % of which are sold to Bradley Division of Carlyle and the remainder to outside customers . Carlyle treats its divisions as profit centers and allows division managers to choose their sources of sale and supply . Corporate policy requires that all interdivisional sales and purchases be recorded at variable cost as a transfer price . Ajax Division ’ s estimated sales and standard cost data for the year ending