ACCT 221 help A Guide to career/Snaptutorial ACCT 221 help A Guide to career/Snaptutorial | Page 6

$6,500 favorable
$5,500 unfavorable
$4,500 favorable
Question 14
Information technology has made it easier for managers to perform all
of the following tasks except
Combining individual units’ budgets into the companywide budget.
Removing budgetary slack from the budget.
Sensitivity analyses
Preparing performance reports that identify variances between actual
and budgeted revenues and costs.
Use the following information to answer questions 15 and 16.
Suppose Amazon sells 1,000 hardcover books per day at an average
price of $15. Assume that Amazon’s cost for the books is 75% of the
selling price it charges retail customers. Amazon has no beginning
inventory, but it wants to have a three-day supply of ending inventory.
Assume that selling and administrative expenses are $500 per day.
Question 15
Compute Amazon’s budgeted sales for the next (seven-day) week.
$78,750
$108,500
$217,500
$105,000
Question 16
Determine Amazon’s budgeted purchases for the next (seven-day)
week.
$150,000
$112,500
$78,750
$37,500
Question 17
The budgeted statement of cash flows is part of which element of the
master budget?
The financial budget