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# is a process of varying key estimates to identify those variables that are most critical to a..

91. is a process of varying key estimates to
identify those variables that are most critical to a decision (or a model, such
as a budget):
A. 1clip_image001.gif”>A demand forecast
B. Sensitivity
analysis
C. Regression
analysis
D. Pareto
analysis
E. Linear
optimization analysis

92.
Assume only the specified parameters
change in a sensitivity analysis. If the contribution margin increases by \$2
per unit, then operating profits will:

A. Also
increase by \$2 per unit.
B. Increase
by less than \$2 per unit.
C. Decrease
by \$2 per unit.
D. Increases,
but by an indeterminate amount.

93. Assume
that only the specified parameters change in a sensitivity analysis. The
contribution margin ratio increases when:

A. Total
short-term fixed costs increase.
B. Total
short-term fixed costs decrease.
C. Variable
cost per unit increases.
D. Variable
cost per unit decreases.

94. The
process of examining how a change in a single item in a budget (e.g., sales
volume) affects one or more items in the budget (e.g., budgeted sales revenue
and budgeted operating income) is generally referred to as:

A. Flexible
budgeting.
B. Linear
programming.
C. Uncertainty
programming.
D. What-if
analysis.
E. Activity-based
budgeting (ABB).

95.
Which
of the following are alternatives to traditional budgeting approaches?
A. Volume-based
budgeting and zero-base budgeting (ZBB).

B. Activity-based
budgeting (ABB) and volume-based budgeting.
C. Kaizen
budgeting and volume-based budgeting.
D. Activity-based
budgeting (ABB), kaizen budgeting, and zero-base budgeting (ZBB).
E. Activity-based
budgeting (ABB), kaizen budgeting, and volume-based budgeting.

Capital
One produces a single product, which it sells for \$8.00 per unit. Variable
costs per unit equal \$3.20. The company expected total short-term fixed costs
to be \$7,200 for the coming month, at the projected sales level of 20,000
units. Management is considering several alternative actions designed to
improve operating results. In conjunction with this, they have created a profit-planning
model, which can be used to evaluate different scenarios.

96.
What
is Capital One’s current break-even point in terms of number of units for the
month?
A. 1,500
units.
B. 2,250
units.
C. 3,330
units.
D. 4,000
units.

97. Suppose
that Capital One’s management believes that a \$1,600 increase in the monthly
promotion costs will provide a boost to sales. By what amount must sales
increase during the month to justify the contemplated expenditure? Round answer
up to the nearest whole number.

A. 200
units.
B. 334
units.
C. 400
units.
D. 668
units.
E. None
of the above.

98. Capital
One’s management believes that a 10% reduction in the selling price will
increase sales volume by 10%. If this plan is implemented, then:

A. Profit
should increase by approximately \$8,000 per month.
B. Profit
should remain approximately the same.
C. Profit
should decrease by approximately \$8,000 per month.
D. Profit
should decrease by approximately \$16,000 per month.
E. Profit
should increase by approximately \$16,000 per month.

99.
A budgeting system that has, in
effect, a budget for a set number of periods (i.e., a constant planning
horizon) at all times is called a(n):

A. Financial
budget
B. Operating
budget
C. Rolling
financial forecast
D. Capital
budget
E. Master
budget

100.All of the following represent alternative
approaches to the traditional budget-preparation process except which one?
A. Master
budgeting.
B. Kaizen
budgeting.
C. Continuous-improvement
budgeting.
D. Activity-based
budgeting (ABB)
E. Time-driven
activity based budgeting (TDABB)

Jul 24 2020 View more View Less