Reference no: EM132973258

Problem 1 When preparing a production budget, the quantity to be produced equals:

Select one:

A. Sales quantity + opening inventory + closing inventory

B. Sales quantity - opening inventory + closing inventory

C. Sales quantity - opening inventory - closing inventory

D. Sales quantity + opening inventory - closing inventory

Problem 2 A flexible budget is a budget that is:

Select one:

A. set prior to the control period and not subsequently changed in response to changes in activity, costs or revenues.

B. continuously updated by adding a further accounting period when the earliest accounting period has expired.

C. changed in response to changes in the level of activity.

D. changed in response to changes in costs.

Problem 3 Which of the following statements describes an incremental budget?

Select one:

A. A budget that is set prior to the control period and not subsequently changed in response to changes in activity, costs or revenues.

B. A budget that is continuously updated by adding a further accounting period when the earliest accounting period has expired.

C. A budget that is changed in response to changes in the level of activity.

D. A budget that is based on the previous budget or actual results adjusting for known changes and inflation.