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NEW QUESTION 53
Brickworks Inc. prepares its annual budget by focusing on the budgeted costs of the processes necessary to produce and sell its products This type of budgeting is known as

• A. activity-based budgeting
• B. zero-based budgeting
• C. project budgeting
• D. flexible budgeting

Answer: B

NEW QUESTION 54
in preparing Klein Corporation's master budget for the following calendar year, the manager of the Production Department requested the purchase of a new piece of machinery with a purchase price of $150.000 in addition, the cost of installing the machine would total $13.000. The purchase price of the machine would be financed by a 6%. 5-year loan with interest due quarterly. The amount Klein Corporation should include in its Capital Expenditures Budget due to this purchase is

• A. $13,000
• B. $163,000
• C. $22,000
• D. $172,000

Answer: D

NEW QUESTION 55
A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change?

• A. An activity-based costing system is more costly to maintain than a traditional costing system
• B. Activity-based costing systems may not replace traditional costing systems used for prepar.ng external financial statements.
• C. In an activity-based costing system, all costs including idle capacity costs, are allocated to products, customers and other costing objects
• D. Companies that make diverse products are least likely to benefit from activity based costing

Answer: A

NEW QUESTION 56
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