Strayer JWI530 Week 10 Knowledge Check Latest 2020 JULY

JWI530 FINANCIAL MANAGEMENT I

Week 10 Knowledge Check

Question 1Rachel is the Division Controller for an Environmental Consulting firm that performs environmental services for a number of government agencies. All regional groups roll up their budget to her and she is responsible for finalizing it, disbursing to everyone for review, and providing an analysis of variances once the actual results are available. Last month, while reviewing the actual results, she noticed that the revenue planned for the engineering group was $350K less than what they had planned for. As a result, it caused the entire Division to significantly miss their net income profit goal for the month as well. Linda has to prepare her analysis of results for their next executive management meeting and wants to ensure that she adequately explains why they did not meet the planned profit goals. What should she do:

Question 2Which of the following are goals of the Budgeting Process:

Question 3Differences that exist between the planned budget and actual results are referred to as what?

Question 4Budgets are estimates and educated guesses about the future.

Question 5Archer Electronics is preparing its annual budget, and your department is working on the cash flow budget. Here is selected information you have:

Description          June     July       August

 Sales     $348,000             $438,000             $450,000

The company makes 10% of its sales for cash and 90% on credit. Of the credit sales, 20% are collected in the month after the sale and 80% are collected two months after. The cash receipts for August are:

Question 6When preparing the annual budget, an organization is going to use a number of the concepts and tools discussed in this course. From the following list, select the tool or concept that does not apply.

Question 7When actual revenue is greater than planned and actual cost is less than planned, we have a favorable variance.

Question 8Of the following budgeting techniques, which approach starts each budgeting year fresh, by wiping the slate clean and requires department managers to justify the budget needed to run their departments in the upcoming year.

Question 9Regardless of the size of the organization, creating a budget consists of several distinct steps involving different functions or departments of the organization. Which of the following is NOT one of the typical steps in the budgeting process?

Question 10You are the CFO for a big-box retail store and you just completed your annual budget for the upcoming year. Almost immediately something happens that impacts the entire population creating unprecedented foot traffic into your stores, causing the sales to increase dramatically, far exceeding what you had planned. Which of the following accounts will be impacted by this enormous increase in sales?