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An ideal budgeting system is one that achieves goals and encourages managers to achieve goals ethically.

In a cost-volume-profit graph, the slope of the total revenue line represents

In cost-volume-profit analysis income taxes __________ the break even point.

Alpha Beta Company has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000. ​ The cost of goods sold for next month is expected to be

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows:   Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month’s sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. ​ How many lamps should be produced in November? 

A functional-based approach to budgeting compares costs for functional line items such as

Bugatti, Inc. decided to institute an advertising campaign that would cost $75,000. Variable costs will remain at $15 per unit. Bugatti is currently selling 100,000 units of its product at $25 per unit. The marketing department is estimating that there will be a 10 percent increase in sales volume. With all else remaining the same, what will be the result of this decision?

Gigondas Incorporated had the following information:   Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,000    40 Engineering hours     60 1,000       Other data:     Total fixed costs (traditional) $100,000   Total fixed costs (ABC)  $  50,000   Unit selling price      $         40   Required:   a. Calculate the break-even point in units using the traditional approach to CVP analysis. b. Calculate the break-even point in units using the activity-based costing approach to CVP analysis. c. Calculate the number of units using the activity-based costing approach, that must be sold to earn a before-tax profit of $40,000. d. Suppose Gilbert could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 900. How many units must be sold to break even in this case?

If all else is the same, if the break-even point increases, then the variable cost per unit must have __________ .

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information:   ​ Large Larger ​ Work Order 10 Work Order 11 Direct materials (actual costs) $45,000 $75,000 ​ ​ ​ Applied conversion costs: ​ ​ Mixing ? ? Cooking $12,000 $12,000 Bottling $10,000 $15,000 ​ ​ ​ Batch size (bottles) 5,000 5,000 ​ In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What are Golden Ring Company’s conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?