Muhammad, Could You Please Help Me on These Finance Questions

Muhammad, could you please help me on these finance questions? Thanks!

1. The process of building slack into budgets is called padding. True False

2. A special cause variation is the result of randomness inherent in the process. True False

3. Control charts are designed to signal when a process is out of control. True False

4. Failure costs are incurred to identify poor-quality products (or services) before a customer receives the goods or services. True False

5. The quality loss function measures the loss to society from a product that does not perform satisfactorily. True False

6. Service organizations such as CPA firms, law firms, hospitals and telecommunications companies face performance issues similar to those found in manufacturing organizations. In a service environment, all of the statements below are true except a. statistical process control charts are commonly used in service organizations to determine if a service process is "in control." b. quality cost systems that attempt to measure the cost of external failure are used by many service organizations. c. service organizations incur costs which could be properly categorized as prevention costs, appraisal costs, and failure costs. d. since service organizations do not produce a tangible product, they are not able to make use of any calculation of variations from a standard cost.

7. The best way to achieve more accurate and achievable budgets is to: a. have the budget committee monitor actual results on a frequent basis so that quick punitive action can be taken when actual results do not comply with budgeted expectations. b. have the budget prepared by top executives only. c. have all employees participate in the preparation of the budget. d. let it be known that budget variances will not be tolerated.

8. Which of the following is an advantage of participative budgeting? a. There are no advantages to participative budgeting compared to non-participative budgeting. b. It is easier to place blame for non-compliance when the budgeting process is participative. c. With a participative budgeting process, top management does not have to take responsibility. d. Middle and lower level managers tend to more readily accept decisions about the allocations of limited resources if they have an active role in planning and setting budget goals.

9. Select the answer that best answers the question: What is a primary advantage of using a standard cost system? a. The company will save money on information processing costs, because the same inventory costing methods can be used for internal and external reporting. b. Standard cost systems help production managers detect when a process is not "in control." c. Standard cost systems tell the production manager how much raw material should be used to produce a defined amount of finished product. d. Standard costs are very useful when companies are concerned with the cost of carrying excess inventory.

10. Which of the following will most likely improve a materials price variance? a. Buying raw materials in large quantities. b. Buying raw materials from only one or two suppliers. c. Hiring more purchasing agents. d. Laying off purchasing agents