Solved

Below Is Selected Information Taken from the Balance Sheet of Huy

question 34

Multiple Choice

Below is selected information taken from the balance sheet of Huy Corporation as of 12/31/06. $\begin{array}{lrr}&\underline{12 / 31 / 05}&\underline{12 / 31 / 06}\\\text { Land } & \$ 100,000 & \$ 100,000 \\\text { Machines } & \underline{80,000} & \underline{70,000} \\\text { Gross property, plant, \& equipment } & 180,000 & 170,000 \\\text { Accumulated depreciation } & \underline{25,000} & \underline{10,000} \\\text { Net property, plant, \& equipment } & \underline{\$ 155,000} & \underline{\$ 160,000} \\\text { Depreciation expense } & & \$ 5,000\end{array}$

-During fiscal 2006, Huy sold fully depreciated assets that originally cost $20,000 for $4,000. In 2006, they purchased assets that cost:

Definitions:

Activity-Based Budgeting

A budgeting approach that considers the underlying activities and costs as the bases for budgets, focusing on cost drivers.

Non-Value-Added Activities

Processes or actions that do not add value to the product or service from the customer's perspective, potentially leading to unnecessary costs.

Rolling Budgets

A financial planning method that continuously updates by adding a new budget period as the current period is completed, ensuring a constant planning horizon.

Continuous Budgeting

A method of budgeting that continuously updates the financial budgets by adding a new period (month, quarter, etc.) as the current period is completed, allowing for near continuous financial planning.