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| Important MCQ On Budget and Budgetary Control |
In this page you will get more than 150+ MCQs on budget and budgetary control. Also you will get here Production Budget MCQs, Flexible Budget MCQ,Sales Budgets MCQs and cash budget mcqs.
[MCQs on Budget and Budgetary Control, MCQ on Budgets,Sales Budgets MCQs, Production Budget MCQs,Management Accounting MCQ, Flexible Budget MCQ]
MCQ On Budget and Budgetary Control
1.What is budgeting?
A. The process of allocating resources to achieve strategic goals
B. The process of predicting future financial results
C. The process of preparing and executing a plan to achieve specific goals
D. All of the above
Answer: D. All of the above
2.What is the main purpose of a budget?
A. To control and evaluate performance
B. To coordinate and motivate employees
C. To plan for the future
D. All of the above
Answer: D. All of the above
3.Which of the following is NOT a type of budget?
A. Operating budget
B. Capital budget
C. Master budget
D. Sales budget
E. Performance budget
Answer: E. Performance budget
4.What is the main difference between a flexible budget and a static budget?
A. A flexible budget adjusts to changes in volume, while a static budget does not
B. A flexible budget is less accurate than a static budget
C. A static budget is more comprehensive than a flexible budget
D. A flexible budget is shorter-term than a static budget
Answer: A. A flexible budget adjusts to changes in volume, while a static budget does not
5.What is the purpose of a budget committee?
A. To create the budget
B. To approve the budget
C. To oversee the implementation of the budget
D. To provide financial advice
Answer: B. To approve the budget
6.What is budgetary control?
A. The process of controlling resources in order to achieve strategic goals
B. The process of preparing and executing a budget plan
C. The process of monitoring and controlling actual performance against budgeted performance
D. The process of evaluating the effectiveness of budgeting
Answer: C. The process of monitoring and controlling actual performance against budgeted performance
7.What is the main benefit of budgetary control?
A. Improved accuracy of financial predictions
B. Improved allocation of resources
C. Improved motivation and coordination of employees
D. Improved decision-making
Answer: D. Improved decision-making
8.What is the main difference between a master budget and an operating budget?
A. A master budget includes long-term plans, while an operating budget focuses on short-term plans
B. A master budget is more detailed than an operating budget
C. An operating budget is a subset of a master budget
D. A master budget is less comprehensive than an operating budget
Answer: C. An operating budget is a subset of a master budget
9.What is the main purpose of a capital budget?
A. To plan for the acquisition of long-term assets
B. To plan for the financing of long-term assets
C. To plan for the maintenance of long-term assets
D. All of the above
Answer: A. To plan for the acquisition of long-term assets.
10. What is a rolling budget?
A. A budget that covers a fixed period of time
B. A budget that is updated regularly to reflect changes in the business environment
C. A budget that is created once and never changes
D. A budget that covers an indefinite period of time
Answer: B. A budget that is updated regularly to reflect changes in the business environment.