Budgetary Control
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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
Q2 | Frequent revision of budgets will…
- affects its reliability
- increase the accuracy
- both
- subjective matter
Q3 | Usually the production budget is stated in terms of…
- money
- quantity
- both
- none
Q4 | Budget period is the…
- period of budget committee
- period of budget centres
- period for which a budget is prepared
- period of budget officer
Q5 | Budget period depends upon…
- the type of budget
- the nature of business
- the length of trade cycles
- 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
Q7 | Plant utilization budget and Manufacturing overhead budgets are types of
- production budget
- sales budget
- cost budget
- none of the above
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
Q9 | Budgetary control system facilitates centralized control with…
- decentralized activity
- centralized activity
- both
- none
Q10 | R&D budget and Capital expenditure budget are examples of
- short-term budget
- current budget
- long-term budget
- none of the above
Q11 | The scare factors is also known as
- key factor
- abnormal factor
- linking factor
- none of the above
Q12 | In Management accounting,emphasis and focus should be
- future oriented
- past oriented
- communication oriented
- bank oriented
Q13 | What are the characteristics of management accounting?
- Decision Making
- Internal Use
- Optional
- 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
Q15 | Management accounting assists the management
- Only in control
- Only in decision making
- Only in planning
- 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
Q17 | Data in management accounting is derived from
- Cost Accounting
- Financial Accounting
- Other Sources
- 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
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
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
Q21 | Total Assets in 2018 10 lac(Negative );in 2019 15 Lac (Positive).What is the Percentage change?
- 150%
- 100%
- 250%
- 50%
Q22 | What is treated as the base in common size P& L statement.
- RFO
- Other Incomes
- Total Income
- Profit before tax
Q23 | Working capital=45,000 ,Total Debt=1,00,000 , LT debt=70,000, what is value of Current assets?
- 30000
- 15000
- 25000
- 75000
Q24 | If Inventory turnover ratio=5 times,what is avg age if inventory?
- 73 days
- 80 days
- 70 days
- 69 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