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Question 1

Life-cycle costing

Options :

A : Is sometimes used as a basis for cost planning and product pricing.

B : Includes only manufacturing costs incurred over the life of the product.

C : Includes only manufacturing cost, selling expense, and distribution expense.

D : Emphasizes cost savings opportunities during the manufacturing cycle.

Answer: A

Question 2

Wilson Company uses a comprehensive planning and budgeting system. The proper order for Wilson to prepare certain budget scheduleswould be:

Options :

A : Cost of goods sold, income statement, balance sheet, and statement of cash flows.

B : Cost of goods sold, balance sheet, income statement, and statement of cash flows.

C : Income statement, balance sheet, statement of cash flows, and cost of goods sold.

D : Statement of cash flows, cost of goods sold, income statement, and balance sheet.

Answer: A

Question 3

Budgets are a necessary component of financial decision making because they help provide a(n)

Options :

A : means to use all the firm-s resources

B : means to check managerial discretion

C : automatic corrective mechanism for errors

D : efficient allocation of resources

Answer: D

Question 4

A budget developed by using budgeted prices and budgeted costs based on the actual output in the budget period is a(n)

Options :

A : continuous budget.

B : flexible budget.

C : life-cycle budget.

D : operating budget.

Answer: B

Question 5

Dividends paid to company shareholders would be shown on the statement of cash flows as

Options :

A : operating cash inflows

B : operating cash outflows

C : cash flows from financing activities

D : cash flows from investing activities

Answer: B