MALİYET VE YÖNETİM MUHASEBESİ - Deneme Sınavı - 5

A master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time

Benefits of budgeting can be explained as follows: Efficient Resource Allocation, Communication, Coordination, Performance Evaluation, Time Management, Motivation

Long-term budgets, on the other hand, are prepared considering the strategic goals and the mission of the company

Master budget; is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period.

The first budget to prepare in the budgeting process is the sales budget.

Ending inventories budget provides an important input for the preparation of both pro forma balance sheet and cost of goods sold budget.

Financial leverage, is the use of debt in financing the acquisition of new assets.

In this easy-to-implement technique, what managers need to do is just adjusting the current year’s budget for small changes.

Goal congruence; is a term that states the consistency between the objectives of the organization and its subordinates is important to achieve the desired results.

Standard cost is the cost determined by careful analyses that states how much something cost to the company under normal conditions.

The difference between the actual results and budgeted amounts is called “variance”.

There are several types of standards that can be classified from different perspectives, such as:
a. the level of difficulty,
b. updating frequency,
c. subject of standards, and
d. level of participation to the standard-setting process.

Ideal standards reflect the peak operating efficiency without any
production disruptions.

Kaizen standards are exactly the opposite of fixed standards because they require continuous updating by their nature. These standards are continuous-improvement standards that reflect planned improvements year-by-year.

Classification According to Subject of Standard divides standards into "quantity standard" and "price standard" According to the answer to the question “what should be the …. of inputs to use in producing one unit”, the name of the standard is determined. If the answer specifies the needed quantity of resource consumption the standard is “quantity standard”; however, if the answer gives the price information on inputs, it is “price standard” that the company sets.

If the standards are set solely or primarily by the management only, they are called the authoritative standards.

The accounting system, in which standard costs and associated variances are recorded in the
formal accounting records is called the “standard costing”.

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

Sales-volume variance = (Actual sales volume - Budgeted sales volume) x Budgeted selling price

The correct answer is B.  Direct raw material cost and direct labor cost is a costs that can be completely assigned to the production of specific goods or services. Manufacturing (factory) overhead cost are assigned to the product or service cost using the distribution key.