McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .
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 | |
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