McqMate
Chapters
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 |
2. |
Budget is prepared for a… |
A. | indefinite period |
B. | definite period |
C. | period of one year |
D. | six months |
Answer» B. definite period |
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 |
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 |
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 |
6. |
Budgetary control facilitates easy introduction of the… |
A. | marginal costing |
B. | ratio analysis |
C. | standard costing |
D. | subjective matter |
Answer» C. standard costing |
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 |
8. |
Budgetary control system helps the management to eliminate… |
A. | undercapitalization |
B. | overcapitalization |
C. | both |
D. | subjective matter |
Answer» C. both |
9. |
Budgetary control provides a basis for… |
A. | bonus shares |
B. | rights shares |
C. | remuneration plans |
D. | none |
Answer» C. remuneration plans |
10. |
Budgetary control helps to introduce a suitable incentive and remuneration based on… |
A. | changes in government policies |
B. | inflationary conditions |
C. | both |
D. | none |
Answer» B. inflationary conditions |
11. |
Budgetary control __________ replace management in decision‐making. |
A. | can |
B. | cannot |
C. | sometimes |
D. | inadequate data |
Answer» B. cannot |
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 |
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 |
14. |
Revision of budgets is… |
A. | unnecessary |
B. | can’t determine |
C. | necessary |
D. | inadequate data |
Answer» C. necessary |
15. |
Frequent revision of budgets will… |
A. | affects its reliability |
B. | increase the accuracy |
C. | both |
D. | subjective matter |
Answer» A. affects its reliability |
16. |
Usually the production budget is stated in terms of… |
A. | money |
B. | quantity |
C. | both |
D. | none |
Answer» C. both |
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 |
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 |
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 |
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 |
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 |
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 |
23. |
A budgeting process which demands each manager to justify his entire budget in detail from beginning is |
A. | functional budget |
B. | master budget |
C. | zero base budgeting |
D. | none of the above |
Answer» C. zero base budgeting |
24. |
Budgetary control system facilitates centralized control with… |
A. | decentralized activity |
B. | centralized activity |
C. | both |
D. | none |
Answer» C. both |
Done Reading?