Chapter:
in Management Accounting
Chapters
- Introduction
- working capital
- Budgetary Control
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Chapter: Budgetary Control
| 1. | A budget is a plan of action expressed in… |
| A. | financial terms |
| B. | non‐financial terms |
| C. | both |
| D. | subjective matter |
| Answer» C. both | |
discuss
| 2. | Budget is prepared for a… |
| A. | indefinite period |
| B. | definite period |
| C. | period of one year |
| D. | six months |
| Answer» B. definite period | |
discuss
| 3. | A budget is tool which helps the management in planning and control of… |
| A. | all business activities |
| B. | production activities |
| C. | purchase activities |
| D. | sales activities |
| Answer» A. all business activities | |
discuss
| 4. | Budgetary control system acts as a friend, philosopher and guide to the… |
| A. | management |
| B. | share holders |
| C. | creditors |
| D. | employees |
| Answer» A. management | |
discuss
See Also
[Solved] Capital Budgeting MCQ [Free PDF] - Objective Question Answer for Capital Budgeting Quiz - Download Now!60 Important Capital Budgeting Questions and Answers [With PDF] - QnA ZoneTop 25 Questions and Answers-Capital Budgeting [With PDF] - Accounting ShareCapital Budgeting – Financial Management MCQ| 5. | Budgetary control system defines the objectives and policies of the… |
| A. | production department |
| B. | finance department |
| C. | marketing department |
| D. | all |
| Answer» D. all | |
discuss
| 6. | Budgetary control facilitates easy introduction of the… |
| A. | marginal costing |
| B. | ratio analysis |
| C. | standard costing |
| D. | subjective matter |
| Answer» C. standard costing | |
discuss
| 7. | Budgetary control helps the management in… |
| A. | obtaining bank credit |
| B. | issue of shares |
| C. | getting grants from government |
| D. | all of these |
| Answer» A. obtaining bank credit | |
discuss
| 8. | Budgetary control system helps the management to eliminate… |
| A. | undercapitalization |
| B. | overcapitalization |
| C. | both |
| D. | subjective matter |
| Answer» C. both | |
discuss
| 9. | Budgetary control provides a basis for… |
| A. | bonus shares |
| B. | rights shares |
| C. | remuneration plans |
| D. | none |
| Answer» C. remuneration plans | |
discuss
| 10. | Budgetary control helps to introduce a suitable incentive and remuneration basedon… |
| A. | changes in government policies |
| B. | inflationary conditions |
| C. | both |
| D. | none |
| Answer» B. inflationary conditions | |
discuss
| 11. | Budgetary control __________ replace management in decision‐making. |
| A. | can |
| B. | cannot |
| C. | sometimes |
| D. | inadequate data |
| Answer» B. cannot | |
discuss
| 12. | The success of budgetary control system depends upon the willing cooperation of… |
| A. | shareholders |
| B. | management |
| C. | creditors |
| D. | all the functional areas of management |
| Answer» D. all the functional areas of management | |
discuss
| 13. | Recording of actual performance is…. |
| A. | an advantage of budgetary control |
| B. | a step in budgetary control |
| C. | a limitation of budgetary control |
| D. | none |
| Answer» B. a step in budgetary control | |
discuss
| 14. | Revision of budgets is… |
| A. | unnecessary |
| B. | can’t determine |
| C. | necessary |
| D. | inadequate data |
| Answer» C. necessary | |
discuss
| 15. | Frequent revision of budgets will… |
| A. | affects its reliability |
| B. | increase the accuracy |
| C. | both |
| D. | subjective matter |
| Answer» A. affects its reliability | |
discuss
| 16. | Usually the production budget is stated in terms of… |
| A. | money |
| B. | quantity |
| C. | both |
| D. | none |
| Answer» C. both | |
discuss
| 17. | Budget period is the… |
| A. | period of budget committee |
| B. | period of budget centres |
| C. | period for which a budget is prepared |
| D. | period of budget officer |
| Answer» C. period for which a budget is prepared | |
discuss
| 18. | Budget period depends upon… |
| A. | the type of budget |
| B. | the nature of business |
| C. | the length of trade cycles |
| D. | all of these |
| Answer» D. all of these | |
discuss
| 19. | A key factor is one which restricts… |
| A. | the volume of production |
| B. | the volume of sales |
| C. | the volume of purchase |
| D. | all of the above |
| Answer» A. the volume of production | |
discuss
| 20. | Plant utilization budget and Manufacturing overhead budgets are types of. |
| A. | production budget |
| B. | sales budget |
| C. | cost budget |
| D. | none of the above |
| Answer» A. production budget | |
discuss
| 21. | R&D budget and Capital expenditure budget are examples of |
| A. | short-term budget |
| B. | current budget |
| C. | long-term budget |
| D. | none of the above |
| Answer» C. long-term budget | |
discuss
| 22. | The scare factors is also known as |
| A. | key factor |
| B. | abnormal factor |
| C. | linking factor |
| D. | none of the above |
| Answer» A. key factor | |
discuss
| 23. | A budgeting process which demands each manager to justify his entire budget indetail from beginning is |
| A. | functional budget |
| B. | master budget |
| C. | zero base budgeting |
| D. | none of the above |
| Answer» C. zero base budgeting | |
discuss
| 24. | Budgetary control system facilitates centralized control with… |
| A. | decentralized activity |
| B. | centralized activity |
| C. | both |
| D. | none |
| Answer» C. both | |
discuss
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