Budgetary Control

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Budgetary Control

Q1 | Revision of budgets is…
  • unnecessary
  • can’t determine
  • necessary
  • inadequate data
Answer: necessary
Q2 | Frequent revision of budgets will…
  • affects its reliability
  • increase the accuracy
  • both
  • subjective matter
Answer: affects its reliability
Q3 | Usually the production budget is stated in terms of…
  • money
  • quantity
  • both
  • none
Answer: both
Q4 | Budget period is the…
  • period of budget committee
  • period of budget centres
  • period for which a budget is prepared
  • period of budget officer
Answer: period for which a budget is prepared
Q5 | Budget period depends upon…
  • the type of budget
  • the nature of business
  • the length of trade cycles
  • all of these
Answer: all of these
Q6 | A key factor is one which restricts…
  • the volume of production
  • the volume of sales
  • the volume of purchase
  • all of the above
Answer: the volume of production
Q7 | Plant utilization budget and Manufacturing overhead budgets are types of
  • production budget
  • sales budget
  • cost budget
  • none of the above
Answer: production budget
Q8 | A budgeting process which demands each manager to justify his entire budget indetail from beginning is
  • functional budget
  • master budget
  • zero base budgeting
  • none of the above
Answer: zero base budgeting
Q9 | Budgetary control system facilitates centralized control with…
  • decentralized activity
  • centralized activity
  • both
  • none
Answer: both
Q10 | R&D budget and Capital expenditure budget are examples of
  • short-term budget
  • current budget
  • long-term budget
  • none of the above
Answer: long-term budget
Q11 | The scare factors is also known as
  • key factor
  • abnormal factor
  • linking factor
  • none of the above
Answer: key factor
Q12 | In Management accounting,emphasis and focus should be
  • future oriented
  • past oriented
  • communication oriented
  • bank oriented
Answer: future oriented
Q13 | What are the characteristics of management accounting?
  • Decision Making
  • Internal Use
  • Optional
  • All of the above
Answer: All of the above
Q14 | The management accounting can be stated an extension of I)Cost Accounting II)Financial Accounting
  • Only I
  • Only II
  • Both I and II
  • None of the Above
Answer: Both I and II
Q15 | Management accounting assists the management
  • Only in control
  • Only in decision making
  • Only in planning
  • In planning, decision making and control
Answer: In planning, decision making and control
Q16 | Which of the following is not the limitation of Management Accounting?I)Developing Stage II)Resistance from Staff III)Lack of wide knowledge IV)Decision Making
  • Only I,II,III
  • Both I & IV
  • Only IV
  • Only I
Answer: Only IV
Q17 | Data in management accounting is derived from
  • Cost Accounting
  • Financial Accounting
  • Other Sources
  • All of the above
Answer: All of the above
Q18 | Financial accounting is the art of .I)Classifying II)Interpreting III)Recording IV)Summarising .Write Correct sequence.
  • III,IV,II,I
  • III,I,IV,II
  • III,I,II,IV
  • III,IV,I,II
Answer: III,I,IV,II
Q19 | Which statement is true.I)Cost records are compulsory in all industries. II)Management accounting records are compulsory by law.
  • Both are False
  • Only II
  • Both I and II
  • Only I
Answer: Both are False
Q20 | Which technique used for figures of two or more periods are placed side by side to facilitate easy and meaningful comparisons?
  • Comparative Statements
  • Common size Statements
  • Trend
  • None
Answer: Comparative Statements
Q21 | Total Assets in 2018 10 lac(Negative );in 2019 15 Lac (Positive).What is the Percentage change?
  • 150%
  • 100%
  • 250%
  • 50%
Answer: 250%
Q22 | What is treated as the base in common size P& L statement.
  • RFO
  • Other Incomes
  • Total Income
  • Profit before tax
Answer: RFO
Q23 | Working capital=45,000 ,Total Debt=1,00,000 , LT debt=70,000, what is value of Current assets?
  • 30000
  • 15000
  • 25000
  • 75000
Answer: 75000
Q24 | If Inventory turnover ratio=5 times,what is avg age if inventory?
  • 73 days
  • 80 days
  • 70 days
  • 69 days
Answer: 73 days
Q25 | What is formula of Capital employed? I)Shareholder's Funds+Non Current Liabilities II)Total Assets-Current Liabilities III)Non Current Assets-Working capital IV)Total Assets-Total Liabilities
  • Only III and IV
  • Only I,II and III
  • All I,II,III,IV
  • Only I and II
Answer: Only I and II
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