Going through the Budgetary Control – Corporate and Management Accounting CS Executive MCQ Questions with Answers you can quickly revise the concepts.
Budgetary Control – Corporate and Management Accounting MCQs
Question 1. A budget is all of the following, except: (A) A plan which will ensure the generation of future profits (B) A system which helps to co-ordinate internal activities (C) A system to integrate the operations for future activity (D) A financial plan for the future Answer: (D) A financial plan for the future
Question 2. For a budget to be useful and relevant for performance measurement it should satisfy all of the following, except: (A) It will be flexible for a range of possible activity volumes (B) It should have involved subordinate staff in the preparation (C) Will have been agreed by those being evaluated (D) It will have been imposed from the highest level of management Answer: (D) It will have been imposed from the highest level of management
Question 3. Which of the following is not a function of budgeting? (A) Decision making (B) Controlling (C) Planning (D) Motivating Answer: (A) Decision making
Question 4. The term “budgetary period” relates to: (A) The period in which the budget is finalized (B) The period for which the budget is prepared (C) The subdivisions of the main budget (D) A specific year for which the budget has been prepared Answer: (B) The period for which the budget is prepared
Question 5. A budget is accepted by a manager when they: (A) Relate it to their own personal objectives (B) Are consulted by top management (C) Agree to it verbally (D) Receive the budget in writing Answer: (A) Relate it to their own personal objectives
Question 6. What functional role do management accountants play in the budgeting process? (A) They facilitate and co-ordinate the budgeting process (B) They audit the financial statements (C) They decide what bonuses should be paid to the staff (D) They set targets for other managers Answer: (A) They facilitate and co-ordinate the budgeting process
Question 7. A fixed budget is: (A) A budget that ignores inflation (B) A budget that is set for a specified level of activity (C) A budget that never changes (D) A budget that itemizes the fixed costs of a department Answer: (B) A budget that is set for a specified level of activity
Question 8. A flexible budget is: (A) A budget that is adjusted to reflect different costs at different activity https://rapidloan.net/payday-loans-mn/ levels (B) A budget that will be changed at the end of the month in order to reflect the actual costs of a department (C) A budget that comprises variable costs only (D) A budget that is constantly being changed Answer: (A) A budget that is adjusted to reflect different costs at different activity levels
Question 9. If actual output is lower than budgeted output which of the following costs would you expect to be lower than the original budget? (A) Total variable costs (B) Total fixed costs (C) Fixed costs per unit (D) Variable costs per unit Answer: (A) Total variable costs
Budgetary Control – Corporate and Management Accounting MCQ
Question 10. When a production budget is being prepared the quantity that needs to be produced is calculated by the following equation: (A) Opening stock less quantity sold plus closing stock (B) Opening stock less quantity sold (C) Quantity sold plus closing stock less opening stock (D) Opening stock plus quantity sold plus closing stock Answer: (C) Quantity sold plus closing stock less opening stock
Question 11. The master budget will comprise: (A) All the production, selling and cost budgets for the organization. (B) The budgeted profit and loss account and the budgeted balance sheet. (C) The cash budget. (D) The cash budget, the budgeted profit and loss account and the budgeted balance sheet. Answer: (D) The cash budget, the budgeted profit and loss account and the budgeted balance sheet.