MCQ on Budgetary Control: Check the below Corporate and Management Accounting MCQ on Budgetary Control with Answers Pdf free download. Corporate and Management Accounting MCQ on Budgetary Control Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Budgetary Control with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Budgetary Control Questions with Answers based on the latest syllabus.

MCQ on Budgetary Control

1. Under which of the following method of budgeting, all activities are re-evaluated each time a budget is set
(A) Materials budget
(B) Zero base budgeting
(C) Sales budget
(D) Overheads budget

2. A document that sets out the responsibility of the persons engaged in the routine of and the procedures, forms and records required for budgetary control is called
(A) Budget centre
(B) Budget report
(C) Budget controller
(D) Budget manual

3. A factor that limits the activities of an undertaking and which is taken into account while preparing a budget is known as
(A) Budget manual
(B) Budget controller
(C) a Budget key factor
(D) Budget centre

4. Budget which remains unchanged regardless of the actual level of activity is known as –
(A) Fixed budget
(B) Functional budget
(C) Flexible budget
(D) Cash budget

5. A budget that gives a summary of all the functional budgets and budgeted statement of profit and loss is called
(A) Flexible budget
(B) Master budget
(C) Performance budget
(D) Zero base budget

6. A budget in which a responsibility centre manager must justify each planned activity and its budgeted total cost is called
(A) Traditional budget
(B) Zero-based budget
(C) Master budget
(D) Functional budget

7. Which one of the following would not form part of the master budget ?
(A) Cash budget
(B) Statement of profit and loss
(C) Statement of financial position
(D) None of the above

8. From the following, which one is a functional budget
(A) Master budget
(B) Fixed budget
(C) Sales budget
(D) Current budget

9. Which one of the following is not an advantage of budgetary control?
(A) Maximization of profit through effective planning
(B) Planned approach for expenditure
(C) Create necessary conditions for setting-up of standard costs
(D) Based on quantitative data and represent only an impersonal appraisal of the conduct of the business activity

10. The budgeting system designed to change in relation to the level of activity actually attained is known as
(A) Fixed budgeting
(B) Flexible budgeting
(C) Performance budgeting
(D) Functional budgeting

11. The budget which usually takes the form of budgeted profit and loss account and balance sheet is known as
(A) Cash budget
(B) Master budget
(C) Flexible budget
(D) Sales budget

12. While preparing the cash budget, which of the following items would not be included
(A) Interest paid to debenture holders
(B) Salaries and wages
(C) Bonus shares issued
(D) Income-tax paid

13. When demand forecasting is difficult, the budget which is prepared:
(A) Sales Budget
(B) Production Budget
(C) Financial Budget
(D) Flexible Budget

14. The budget which usually takes the form of profit and loss account and balance sheet is known as:
(A) Cash budget
(B) Master budget
(C) Flexible budget
(D) Labour budget

15. One of the most significant tools in cost planning is:
(A) Direct material
(B) Budget
(C) Marginal costing
(D) Direct labour

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By Team Learning Mantras