FIN704 - Managerial Accounting

Units to be produced for the month of April would be Rs. 19,000 if opening inventory, closing inventory and budgeted sales were 4,000 units, 3,500 units and 20,000 units respectively. True False Cost control technique is only effective when some form of standard can be set. True Flase Flexible budget consists on several budgets. True Flase Indirect material cost is included in factory overhead cost budget. True Flase Cash budget is part of budgeted income statement. True Flase Cost control technique is concerned with genuine cost saving even standards are challenged. True Flase Production budget can be calculated as follows: Sales budgeted + desired ending inventory – opening inventory True Flase Under estimation of revenues and costs is budget padding. True Flase Direct material budget, direct labor budget and factory overhead budget are part of budgeted income statement. True Flase Direct material budget is part of budgeted income statement. True Flase Cash budget is part of budgeted balance sheet. True Flase Nature of flexible budget is dynamic. True Flase Fixed budget is based on assumption and flexible budget is realistic. True Flase Price variance can be calculated as follows as follows: (Actual cost incurred - standard cost) x Actual quantity of units purchased True Flase