Q1. Which one of the following factors would cause budgeted revenue to be less than the expected demand?
- Excess capacity exists
- Abundant resources are available
- Excess supply of labor exists
- Demand exceeds capacity
Q2. If a firm is using activity-based budgeting, the firm would use this in place of which of the following budgets?
- Manufacturing overhead budget
- Direct labor budget
- Direct materials budget
- Revenue budget
Q3. A responsibility center where the manager is accountable for only the revenues and costs is a(n)
- profit center.
- revenue center.
- investment center.
- cost center.
Q4. A cost that is primarily subject to the influence of a given responsibility center manager for a given period is a(n)
- controllable cost.
- allocated cost.
- sunk cost.
- uncontrollable cost.