All Related Questions of Operating Budget

Q: As of December 31, 2010, New Town had $9

As of December 31, 2010, New Town had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2010, and there are no liabilities....

Q: The Town of Bedford Falls approved a General Fund operating budget for

The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2011. The budget provides for estimated revenues of $2,700,000 as follows: property taxes, $1,900...

Q: The City of Perrin collects its annual property taxes late in its

The City of Perrin collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid u...

Q: A portion of the General Fund operating budget for Southwest City’s Street

A portion of the General Fund operating budget for Southwest City’s Street Department follows here and on subsequent pages. Required After reading and evaluating the budget informat...

Q: A local exempt organization that trains at-risk youth for employment

A local exempt organization that trains at-risk youth for employment has an annual operating budget of $300,000, which includes revenue from operating a gift shop in a nearby hotel lobby. Gift shop sa...

Q: One proposal is to make equal amounts of the products. What

One proposal is to make equal amounts of the products. What amount of each will maximize contribution, and what quantities of labor and materials will be needed? How much less will total contribution...

Q: Son, Ltd., manufactures a variety of chemical products used by

Son, Ltd., manufactures a variety of chemical products used by photo-processors. Son was recently bought out by a conglomerate, and managers of the two organizations have been working together to impr...

Q: Webb & Drye (WD) is a New York City law

Webb & Drye (WD) is a New York City law firm with over 200 attorneys. WD has a sophisticated set of information technologies—including intranets and extranets, e-mail servers, th...

Q: Scanners Plus manufactures and sells two types of scanners for personal computers

Scanners Plus manufactures and sells two types of scanners for personal computers, the Home Scanner and the Pro Scanner. The Home model is a low resolution model for small office applications. The Pro...

Q: Increased global competition has spurred most firms to take a hard look

Increased global competition has spurred most firms to take a hard look at their costs and become “lean and mean.” Rochco, a large industrial complex, has seen offshore competition erode its market sh...

Q: The admissions office of a large hospital has an annual operating budget

The admissions office of a large hospital has an annual operating budget of $700,000. These costs are distributed to inpatient departments (surgery, medicine, pediatrics, psychiatry) and to outpatient...

Q: Describe the difference between an operating budget and a capital expenditures budget

Describe the difference between an operating budget and a capital expenditures budget.

Q: Rosewood Cancer Hospital, a county hospital, has the following assets

Rosewood Cancer Hospital, a county hospital, has the following assets: 1. $4 million restricted by third-party reimbursement agreements to be used to replace radiology equipment. 2. Cash and investmen...

Q: Vancouver Consulting Associates, a division of Maple Leaf Services Corporation,

Vancouver Consulting Associates, a division of Maple Leaf Services Corporation, offers management and computer consulting services to clients throughout Canada and the northwestern United States. The...

Q: In the late 1990s, James Fazio reached what many CPAs consider

In the late 1990s, James Fazio reached what many CPAs consider the pinnacle of success in the accounting profession, namely, partnership in one of the Big Four public accounting firms. For more than a...

Q: The operating results in summarized form for a retail computer store for

The operating results in summarized form for a retail computer store for 2010 are: Revenue: Hardware sales ………………………………………………….$ 4,800,000 Software sales ………………………………………………………2,000,000 Maintenance co...

Q: Attala Co., a division of Jackson Industries ( JI), offers

Attala Co., a division of Jackson Industries ( JI), offers consulting services to clients for a fee. JI’s corporate management is pleased with the performance of Attala Co. for the f...

Q: Stein Corporation wants to find an equation to estimate some of their

Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: Required: 1....

Q: Reisen Travel offers helicopter service from suburban towns to John F.

Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. Th...

Q: Bank Management Printers, Inc., produces luxury checkbooks with three checks

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs perpage. Each checkbook is designed for an individual customer and is ordered through the customer’s bank. The co...

Q: In many organizations, the operating budget is the primary control tool

In many organizations, the operating budget is the primary control tool. The use of a budget to control activities is more appropriate in some circumstances than in others, and always a key criterion...

Q: Dalian Company is a Chinese state-owned enterprise. This means

Dalian Company is a Chinese state-owned enterprise. This means that ownership of the company rests in one of the ministries of the Chinese central government. Ministry officials have decided to sell a...

Q: As of December 31, 2016, Sandy Beach had $9

As of December 31, 2016, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2016, and there are no liabilitie...

Q: The City of Troy collects its annual property taxes late in its

The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upo...

Q: The City of Waterman established a debt service fund to account for

The City of Waterman established a debt service fund to account for the financial resources used to service the bonds issued to finance the ramp (see Exercise 18-6). The 10 percent, $150,000 bond issu...

Q: Olivia Village was recently incorporated and began financial operations on July 1

Olivia Village was recently incorporated and began financial operations on July 1, 20X2, the beginning of its fiscal year. The following transactions occurred during this first fiscal year, July 1, 20...

Q: You are given the following post-closing trial balance for the

You are given the following post-closing trial balance for the Special Assessment Capital Projects Fund of the city of Stone Creek as of January 1, 2018. The project was started last year and should b...

Q: Bentley Dynamics, Inc., produces computer chips for personal electronic devices

Bentley Dynamics, Inc., produces computer chips for personal electronic devices used to record music. The chips are sold primarily to large manufacturers; however, occasional production overruns may b...

Q: Allison Manufacturing produces a subassembly used in the production of jet aircraft

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units...

Q: The following activities and transactions are typical of those that may affect

The following activities and transactions are typical of those that may affect the various funds used by a typical municipal government. Required: Prepare journal entries to record each transaction a...

Q: The following events relate typical activities in a municipality that affect the

The following events relate typical activities in a municipality that affect the General Fund. 1. The Meadville City Council passed an ordinance approving a general operating budget of $580,000 for fi...

Q: Allison Manufacturing produces a subassembly used in the production of

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units...

Q: Trustex Printers Inc. produces luxury chequebooks with three cheques and stubs

Trustex Printers Inc. produces luxury chequebooks with three cheques and stubs per page. Each chequebook is designed for an individual customer and is ordered through the customer’s bank. The company’...

Q: Perhaps the national debt and federal budget deficits are really not so

Perhaps the national debt and federal budget deficits are really not so large and threatening. For example, it can be argued that we should use real rather than nominal values to report the national d...

Q: Bank Management Printers, Inc., produces luxury checkbooks with three checks

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customerâ€&...

Q: You have just completed an interview with the newly formed audit committee

You have just completed an interview with the newly formed audit committee of the Andrews Street Youth Centre (ASYC). This organization was created to keep neighborhood youth off the streets by provid...

Q: Toronto Business Associates, a division of Maple Leaf Services Corporation,

Toronto Business Associates, a division of Maple Leaf Services Corporation, offers management and computer consulting services to clients throughout Canada and the north western United States. The div...

Q: Krouse Company produces two products, forged putter heads and laminated putter

Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing its operating budget for...

Q: Norland-Norge AS produces corporate notebooks. Each notebook is designed

Norland-Norge AS produces corporate notebooks. Each notebook is designed for an individual customer. The company’s operating budget for September 2018 included these data: The actual...

Q: Mrs. Mary Atkins, age 66, has been your firm’s

Mrs. Mary Atkins, age 66, has been your firm’s client for five years, since the death of her husband, Dr. Charles Atkins. Dr. Atkins had built a successful newspaper business that he sold two years be...

Q: The copy center at the college of business at State University has

The copy center at the college of business at State University has become an increasingly contentious item among the college administrators. The department heads have complained to the associate dean...

Q: Explain why it is necessary to distinguish between cash budget estimates and

Explain why it is necessary to distinguish between cash budget estimates and operating budget estimates.

Q: Ponderosa, Inc., produces wiring harness assemblies used in the production

Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sal...

Q: As part of its cost control program, Tracer Company uses a

As part of its cost control program, Tracer Company uses a standard costing system for all manufactured items. The standard cost for each item is established at the beginning of the fiscal year, and t...

Q: The Redmond Management Association held its annual public relations luncheon in April

The Redmond Management Association held its annual public relations luncheon in April Year 2. Based on the previous year’s results, the organization allocated $25,290 of its operatin...

Q: I thought the Internet would be an ideal way to distribute our

I thought the Internet would be an ideal way to distribute our products. We’ve had a lot of success with our direct sales, but now we can reach a much larger audience. The baskets we...

Q: In 1984, twenty-three-year-old Wanda Liczyk

In 1984, twenty-three-year-old Wanda Liczyk received her designation as a chartered accountant. The following year, she left Coopers & Lybrand (now part of PricewaterhouseCoopers) to become a budget a...

Q: The school board in a municipality will require an extra $2

The school board in a municipality will require an extra $2,430,000 for its operating budget next year. The current mill rate for the school tax component of property taxes is 7.1253. 1. If the total...

Q: Alpha Corp. expects to operate at 80% of capacity next

Alpha Corp. expects to operate at 80% of capacity next year. Its forecast operating budget is Sales revenue $1,200,000 Fixed costs $300,000 Total variable costs $800,000 Total costs $1,100,000 Net i...

Q: FlyHigh Vacations offers helicopter service from suburban towns to Heathrow Airport in

FlyHigh Vacations offers helicopter service from suburban towns to Heathrow Airport in the United Kingdom. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. The records in...

Q: Which of the following statements is true about a master budget?

Which of the following statements is true about a master budget? I. It is a summary of all other budgets. It is expressed as a budgeted income and is mentioned in the balance sheet. II. The master bud...