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• 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