Control Budget through management MCQs

Control Budget through management MCQs

1: A budget that estimates costs for _____ activities is known as Actively Based Budget.

A.   Group

B.   Team

C.   Individual

D.   Society

2: A budget based on a previous year’s budget, adjusted for current information is known as ?

A.   Add On Budget

B.   Bracket Budget

C.   Activity Based Budget

D.   Cash Budget

3: Bottom line is a line at the bottom of a financial report that shows the _____.

A.   Net Profit

B.   Loss

C.   Savings

D.   Both a and b

4: A contingency plan with costs projected at _____ levels than the base amount, providing a clear picture of what will occur should forecasts not be achieved is called Bracket Budget.

A.   Higher Budget

B.   Lower Budget

C.   Middle Budget

D.   Both a and b

5: Budget control is the extent to which budgets are used to _____ in a given accounting period.

A.   Monitor

B.   Control costs

C.   Operations

D.   All of the above

6: Budget Gaming is the deliberate estimation of budgeted revenue or estimation of budgeted expenses.

A.   True

B.   False

7: Budgetary control is also known as Cash budget.

A.   True

B.   False

8: Which one of the statements is correct to accomplish the budgetary slack?

A.   Estimation of budgeted revenue

B.   Estimation of budgeted expenses

C.   Underestimation of budgeted revenue

D.   Underestimation of Constrained Resources

9: Capital expenditure budget is a formal plan that states the _____ of fixed asset purchases by an organization.

A.   Amounts

B.   Timing

C.   Resources

D.   Both a and b

10: Cash Budget is an estimation of the cash _____ for a business over a specific period of time.

A.   Inflows

B.   Outflows

C.   Overflows

D.   Both a and b

11: Competitive advantage is a condition that allows a company to maintain a more profitable position in the market than other companies.

A.   True

B.   False

12: A resource available in unlimited quantities is known as Constrained Resources.

A.   True

B.   False

13: In Controlling the process of management _____ the likelihood that objectives are attained and that all parts of an organization are working together toward that goal.

A.   Increase

B.   Decrease

C.   Minimum

D.   Both b and c

14: A unit that spends money is called?

A.   Cost Centers

B.   Profit Centers

C.   Investment Centers

D.   Revenue Centers

15: Cost of goods sold is the production costs for products _____ and resold by the company.

A.   Manufactured

B.   Sold

C.   Purchased

D.   All of the above

16: Money spent on something is called?

A.   Expenses

B.   Cost

C.   Expenditure

D.   All of the above

17: A budget that examines the expected _____ equity of the business.

A.   Assets

B.   Liabilities

C.   Stockholders

D.   All of the mentioned

18: Financial Statements are summary of accounting reports, prepared periodically to inform the _____and other interested parties as to the financial condition of a business.

A.   Executives

B.   Managers

C.   Creditors

D.   All of the above

19: Fixed Organizational expenses are unchanged and repetitive expenses.

A.   True

B.   Flase

20: Fixed organizational expenses are?

A.   Unchanged

B.   Repetitive expenses

C.   Both a and b

D.   None of these

21: Flexible budget is a series of budgets prepared for various levels of _____ ?

A.   Activities

B.   Revenues

C.   Expenses

D.   All of the above

22: ___________ is also known as an operating statement or profit and loss (P&L); a summary of management’s performance as reflected in the profitability (or lack thereof) over a certain period.?

A.   Income Statement

B.   Bank statement

C.   Account statement

D.   All of these

23: A Incremental budget that uses a previous month's actual figures and adds or subtracts a percentage to obtain the current year’s budget.?

A.   True

B.   False

24: Master Budget is an individual financial and operating plan for a forthcoming calendar or fiscal year.

A.   True

B.   false

25: The costs for merchandise or services produced is known as ?

A.   Operating Budget

B.   budget outlines the funds

C.   Cost manage

D.   Data collection

26: Operating Statement is ?

A.   See income statement

B.   Refers to a financial statement

C.   Presented on a cash

D.   None of these

27: The Opportunity Cost value of the next-lowest-valued alternative use of that resource.?

A.   True

B.   False

28: Anticipating future needs and conditions is known as?

A.   Planning

B.   Opportunity Costs

C.   Decision making

D.   All of these

29: Profit and Loss Statement (P&L) is ?

A.   See income statement

B.   refers to a financial statement

C.   presented on a cash

D.   None of these

30: A budget designed for a specific activity or program is known as ?

A.   Program Budget

B.   Activity base

C.   Value proposition

D.   None of these

31: A _______ system that involves identifying entities responsible for decision-making within an organization and learning about their objectives, developing performance measurement schemes, and preparing and analyzing performance reports of decision-makers.?

A.   Responsibility Accounting

B.   Target and information

C.   Assigning cost

D.   None of these

32: A unit that makes money is known as ?

A.   Revenue Centers

B.   Profit center

C.   Cost center

D.   Investment center

33: Rolling (Continuous) Budget Involves _________ extending the existing budget model at set periods of time.

A.   Incrementally

B.   as fast as greased lightning

C.   Immediately

D.   progressively

34: One-time special customer order, often involving a large____ and a low price.?

A.   Quantity

B.   Quality

C.   Weight

D.   None of these

35: ________Prioritization Management’s ethical decision about which stakeholders to focus on and in which order.?

A.   Stakeholder

B.   Stockholder

C.   shareholder

D.   interested parties

36: A ____budget that does not change or flex for increases or decreases in volume.?

A.   Static

B.   Fixed

C.   Dynamic

D.   None of these

37: A Strategic budget that integrates strategic planning and_______ control.

A.   Budgeting

B.   Operational

C.   Standard costing

D.   Internal audit

38: A stretch budget based on sales and marketing forecasts that are less than estimates.?

A.   True

B.   False

39: Costs that should not influence future financial decisions is known as?

A.   Sunk costs

B.   Irretrievable cost

C.   Irrelevant cost

D.   None of these

40: A Supplemental budget that allocates funds for budget areas captured in the regular budget.?

A.   True

B.   False

41: A target budgeting process that matches minor expenditures to a company’s goals.

A.   True

B.   False

42: A Value Proposition budgeting process that is centered around ensuring that everything included in the budget delivers value for the business, cutting necessary expenditures in the process.?

A.   True

B.   False

43: A budget that is built from zero, rather than through incremental adjustments is known as ______?

A.   Zero-Based Budget

B.   Rigidity

C.   unset

D.   None of these

44: The four most common types of budgets used by companies are incremental, activity-based, value proposition, and ______ statements.

A.   revenue

B.   income value

C.   zero-based

D.   percentage-focused

45: ______ are summary accounting reports showing the financial condition of the business to interested parties in an organization.

A.   Financial statements

B.   Management memos

C.   Revenue sheets

D.   Blue pages

46: ______ costs are considered irrelevant costs.

A.   Zero

B.   Sunk

C.   Wasted

D.   Dropped

47: What type of budget serves as a summary for all sub-budgets?

A.   finance budget

B.   cash budget

C.   master budget

D.   executive budget

48: Lilly uses Excel a lot in her current role because she prefers to use standard Excel functionality that anyone can use. This type of data is ______ because all Excel files follow the same model and can be easily analyzed.

A.   semi-structured

B.   unstructured

C.   structured

D.   loose

49: Which assessment would you recommend for a company that wants to ensure that the current and future needs of customers are being met?

A.   financial

B.   customer satisfaction

C.   internal business process

D.   learning and growth culture

50: ______ is one key managerial function that allows managers to check their processes for errors and make necessary corrections.

A.   Organizational control

B.   Performance Management

C.   Operational control

D.   Feedback control