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    Budget MCQ BBC PDF

    Uploaded by

    Drpranav Saraswat
    The document contains 30 multiple choice questions about budgets and budgetary control. It covers topics like what a budget is, the period for which budgets are prepared, the functions of budgetary control systems, types of budgets, key factors, budget classification, objectives of budgetary control, budget centers, and fixed budgets. Some key points covered are that a budget is a plan expressed in financial terms, budgets are prepared for a definite period usually of one year, budgetary control helps management in planning, coordination and achieving goals, budgets can be classified by time or function, and fixed budgets are not useful for comparison when activity levels fluctuate.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Budget MCQ BBC PDF

    Uploaded by

    Drpranav Saraswat
    201 views7 pages
    The document contains 30 multiple choice questions about budgets and budgetary control. It covers topics like what a budget is, the period for which budgets are prepared, the functions of budgetary control systems, types of budgets, key factors, budget classification, objectives of budgetary control, budget centers, and fixed budgets. Some key points covered are that a budget is a plan expressed in financial terms, budgets are prepared for a definite period usually of one year, budgetary control helps management in planning, coordination and achieving goals, budgets can be classified by time or function, and fixed budgets are not useful for comparison when activity levels fluctuate.

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    budget__mcq__bbc.pdf

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    The document contains 30 multiple choice questions about budgets and budgetary control. It covers topics like what a budget is, the period for which budgets are prepared, the functions of budgetary control systems, types of budgets, key factors, budget classification, objectives of budgetary control, budget centers, and fixed budgets. Some key points covered are that a budget is a plan expressed in financial terms, budgets are prepared for a definite period usually of one year, budgetary control helps management in planning, coordination and achieving goals, budgets can be classified by time or function, and fixed budgets are not useful for comparison when activity levels fluctuate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    201 views7 pages

    Budget MCQ BBC PDF

    Uploaded by

    Drpranav Saraswat
    The document contains 30 multiple choice questions about budgets and budgetary control. It covers topics like what a budget is, the period for which budgets are prepared, the functions of budgetary control systems, types of budgets, key factors, budget classification, objectives of budgetary control, budget centers, and fixed budgets. Some key points covered are that a budget is a plan expressed in financial terms, budgets are prepared for a definite period usually of one year, budgetary control helps management in planning, coordination and achieving goals, budgets can be classified by time or function, and fixed budgets are not useful for comparison when activity levels fluctuate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

     

    UNIT ‐ 5  
    Module – 8 
    Budgets & Budgetary 
    Control  
    Multiple Choice 
    Questions  
     
    1. A budget is a plan of action expressed in… 
    a. Financial terms 
    b. Non‐financial terms 
    c. Both 
    d. Subjective matter 
     
    2. Budget is prepared for a… 
    a. Indefinite period 
    b. Definite period 
    c. Period of one year 
    d. Six months 
     
    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 
     
    4. Budgetary control system acts as a friend, philosopher and guide to the… 
    a. Management 
    b. Share holders 
    c. Creditors 
    d. Employees 
     
    5. Budgetary control system defines the objectives and policies of the… 
    a. Production department 
    b. Finance department 
    c. Marketing department 
    d. All 
     
     
     
     
    6. Budgetary control system facilitates centralized control with… 
    a.  Decentralized activity 
    b. Centralized activity 
    c. Both 
    d. None 
     
    7. Budgetary control facilitates easy introduction of the… 
    a. Marginal costing 
    b. Ratio analysis 
    c. Standard costing 
    d. Subjective matter 
     
    8. Budgetary control helps the management in… 
    a. Obtaining bank credit 
    b. Issue of shares 
    c. Getting grants from government 
    d. All of these 
     
    9. Budgetary control system helps the management to eliminate… 
    a. Undercapitalization 
    b. Overcapitalization 
    c. Both 
    d. Subjective matter 
     
    10.Budgetary control provides a basis for… 
    a. Bonus shares 
    b. Rights shares 
    c. Remuneration plans 
    d. None 
     
     
     
    11.Budgetary control helps to introduce a suitable incentive and remuneration 
    based on… 
    a. Changes in government policies 
    b. Inflationary conditions 
    c. Both 
    d. None 
     
    12.Budgetary control __________ replace management in decision‐making. 
    a. Can  
    b. Cannot 
    c. Sometimes 
    d. Inadequate data 
     
    13.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 
     
    14.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 
     
    15.Revision of budgets is… 
    a. Unnecessary 
    b. Can’t determine 
    c. Necessary 
    d. Inadequate data 
     
     
    16.Frequent revision of budgets will… 
    a. Affects its reliability 
    b. Increase the accuracy 
    c. Both 
    d. Subjective matter 
     
    17.Usually the production budget is stated in terms of… 
    a. Money 
    b. Quantity 
    c. Both 
    d. None 
     
    18.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 
     
    19.Budget period depends upon… 
    a. The type of budget 
    b. The nature of business 
    c. The length of trade cycles 
    d. All of these 
     
    20.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 
     
     
     
     
    21.Key factor is also known as… 
    a. Limiting factor 
    b. Governing factor 
    c. Principal factor 
    d. All  
     
    22.Budget relating to the key factor is prepared… 
    a. After other budgets 
    b. With other budgets 
    c. Before other budgets 
    d. None 
     
    23.The budgets are classified on the basis of… 
    a. Time 
    b. Function 
    c. Flexibility 
    d. All 
     
    24.An example of long period budget is… 
    a. R& D budget 
    b. Master budget 
    c. Sales budget 
    d. Personnel budget 
     
    25.Sales budget shows the sales details as… 
    a. Month wise 
    b. Product wise 
    c. Area wise 
    d. All of the above 
     
     
     
     
    26.Production budget is… 
    a. Dependent on purchase budget 
    b. Dependent on sales budget 
    c. Dependent on cash budget 
    d. None 
     
    27.The main objective of budgetary control is… 
    a. To define the goal of the firm 
    b. To coordinate different departments 
    c. To plan to achieve its goals 
    d. All of the above 
     
    28.A budget centre is… 
    a. Department or part of the department 
    b. Meeting place for budget committee 
    c. Office of the budget officer 
    d. None 
    29. The budget committee consists of… 
    a. Managers 
    b. Budget officers 
    c. Creditors 
    d. Both 
     
    30.Fixed budget is useless for comparison when the level of activity… 
    a. Increases 
    b. Fluctuates both ways  
    c. Decreases 
    d. Constant 
     
     

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