Problem 1: A standard cost or production standard that assumes maximum operating conditions and 100% efficiency at all times is called a(n):
a. ideal standard.
b. past experience standard.
c. attainable standard.
d. average standard.
Problem 2: A key to estimating an accurate amount of cash to be collected from sales is:
a. the accuracy of the sales forecast.
b. the accuracy of the estimated collection patterns for sales.
c. both A and B are keys.
d. neither A nor B are keys.
Problem 3: What is the "key" to the entire operating budget?
a. The production/purchases budget.
b. The forecast of operating activity.
c. The budgeted balance sheet.
d. The budgeted income statement.