The budget which commonly takes the form of budgeted profit and loss account and balance sheet is

Related MCQs

• Which of the following is / are true with regard to the period of budget? i) the budget period depends on the nature of industry ii) master budget is prepared annually while functional budget may be for different periods iii) Basic budget is the long term budget
• A company is preparing a production budget for the next year. The following information is relevant : Budgeted sales 10,000 units Opening stock 600 units Closing stock 5% of budgeted sales The production process is such that 10% of the units produced are rejected. What is the number of units required to be produced to meet demand?
• ………………….budget may be classified into material cost budget, labour cost budget and overhead budget.
• The budgeted cost of electricity is Rs. 62,500 for 5,000 units of production per month and Rs. 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2014, the budgeted amount of electricity for the month is
• The following details have been extracted from the debtors collection records of X limited: Invoices paid in the month after sale 60% Invoices pain in the second month after sale 20% Invoices paid in the third month after sale 15% Bad debts 5% Credit sales for June to August 2014 or budgeted as follows: June Rs. 1,00,000 July Rs. 1,50,000 August Rs. 1,30,000 customers pain in the month after sale are entitled to deduct a 2% cash discount. Invoices are issued on the last day of the month. The amount budgeted to be received in September 2014 from credit sales is
• The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:
• ABC ltd. uses the following flexible budget formula to annual maintenance cost: Total cost = Rs. 6720 + Rs. 0.64 for machine hour The current month's budget is based on 20,000 hours of planned machine time. The maintenance cost included in this flexible budget for the current month is
• When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to…………..
• In process costing, the abnormal loss is treated as ……….cost and written off to profit & loss account.
• If the amount of work certified is less than………of the contract price, then no profit should be taken to Profit & Loss Account.