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## CMA p1 SU51. The major objectives of any budget system are to40.0 hours., 40.5 hours., 50.0 hours, 45.0 hours., 2. A budget manual, which enhances the operation of a budget system, is most likely to include %22 Multiple regression, Graphic method., Simple regression., High and low point method., 3. The major disadvantage of a budget produced by means of a top-down process is Foster the planning of operations, facfacilitate thefixing of blame for missed budget predictions,and ensure goal congruence between superiors and subordinates , .B. Define responsibility centers, facilitate thefixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates., Foster the planning of operations, provide a framework for performance evaluation, andpromote communication and coordination among organization segments., . Define responsibility centers, provide aframework for performance evaluation, andpromote communication and coordinationamong organization segments, 4. What are the four components of a time series? Unit material costs., Overhead variances., Unit direct labor costs., Total unit costs., 5. The process of evaluating the effect of changes in variables such as sales price or wage rates on the optimum solution in a linear programming application is called Queuing theory., Exponential smoothing, Program Evaluation and Review Technique learning , Linear programming., 6. The four components of time series data are secular trend, cyclical variation, seasonality, and random variation. The seasonality in the data can be removed by . Ignoring it., Multiplying the data by a seasonality factor., Taking the weighted average over four time periods., Subtracting a seasonality factor from the data, 7. A particular manufacturing job is subject to an estimated 90%25 learning curve. The first unit required 50 labor hours to. complete. What is the cumulative average time per unit after four. units are completed? -0.73, -0.11, 0.12, 0.35, 8. Red Baron, Inc. is a new competitor in the production of airplane propellers. Red Baron has to train its employees in the process of making propellers. To increase the speed of learning, Red Baron will give a bonus to the employee with thelowest cumulative average time per unit after eight units are completed. Lucy took 50 hours to complete the first unit, and she is subject to an 80%25 learning curve. Sally took 60 hours to complete the first unit, and she is subject to a 70%25 learning curve. Marcy took 40. hours to complete the first unit, and she is subject to a 90%25 learning curve. Patty took 55 hours to complete the first unit, and she is subject to a 75%25 learning curve. Which employee will receive the bonus? Variable coefficient., Dependent variable., Constant coefficient. , Independent variable., 9. . The correlation coefficient that indicates the weakest linear association between two variables is $10,368 , $4,320, $2,592 multiple choice questions , $17,280, 10. Which one of the following is most important to a successful budgeting effort? $68,000 , $85,000, $84,000, $67,200, 11. In the standard regression equation y= a.%2b bx, the letter b is best described as a(n) Difference between the expected profit under certainty and the expected opportunity loss., Same as the expected profit under certainty. , Difference between the expected profit under certainty and the expected monetary value of the best act under uncertainty, Sum of the conditional profit (loss) for the best event of each act times the probability of eachevent occurring., 12. . Philip Enterprises, distributor of video discs, isdeveloping its budgeted cost of goods sold for next year. Philip has developed the following range of sales estimates and associated probabilities for the year: Sales Estimate Probability $ 60,000. 25%25 85,000 40%25 100,000 35%25 Philip%27s cost of goods sold averages 80%25 of sales. What is the expected value of Philip%27s budgeted-cost of goods sold? Matrix analysis., %27Sensitivity analysis., AIterative analysis. e-learning , Regression analysis., 13. Which one of the following is a sales forecasting technique that can be utilized in preparing,the annual profit plan? Trend, cyclical, seasonal, and repetitive., Alpha, cyclical, seasonal, and repetitive. language , Alpha, cyclical, seasonal, and irregular, Trend, cyclical, seasonal, and irregular., 14. Define the meanning of a budget , explain why budgeting is important and characteristics of a successful budgeting Lucy, Marcy, Patty, 15. . Learning curves are best used to predict The average monthly advertising expenditurein the sample is $800,000. , Advertising is not a good predictor of salesbecause the coefficient is so small., On average, for every additional dollar inadvertising you get $0.80 in additional sales, When monthly advertising is at its averagelevel, product sales will be $800,000., 16. A budget helps a company control costs by setting cost guidelines. However, a budget also performs the function(s) of. nconsistency with strategic plans., Impairment of goal congruence., Lack of involvement by upper-levelmanagement., Absence of a significant motivational effect, 17. The expected value of perfect information is the Top management support, Reliable forecasts and trend analyses., Integrated budget software., Experienced analysts, 18. The average labor cost per unit for the first batch produced by a new process is $120. The cumulative average labor cost after the second batch is $72 per product. Using a batch size of 100 and assuming the learning curve continues, the total labor cost of four batches will be Communicating, Motivating, Planning., All of the answers are correct., 19. In determining cost behavior in business,. the cost function is often expressed as y = a %2b bx. Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation? profit plan , budget manual , budget calender ,, , , |