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Standard cost, cash collections, key to operating budget

13. A standard cost or production standard that assumes maximum operating conditions and 100% efficiency at all times is called a(n):
a. ideal standard.
b. past experience standard.
c. attainable standard.
d. average standard.

14. A key to estimating an accurate amount of cash to be collected from sales is:
a. the accuracy of the sales forecast.
b. the accuracy of the estimated collection patterns for sales.
c. both A and B are keys.
d. neither A nor B are keys.

15. What is the "key" to the entire operating budget?
a. The production/purchases budget.
b. The forecast of operating activity.
c. The budgeted balance sheet.
d. The budgeted income statement.

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13. A standard cost or production standard that assumes maximum operating conditions and 100% efficiency at all times is called a(n):
a. ideal standard.
b. past experience standard.
c. attainable standard.
d. average standard.

A. No breaks, no sick workers, perfect ...

Solution Summary

A sentence or two explain the reason for each choice.

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