MCQ.

Budgeting method, which incorporates an improvement anticipated in budgeting period

into budget numbers can be classified as

A. anticipated budgeting
B. number budgeting
C. predict budgeting
D. kaizen budgeting

Answer D

MCQ. Part of master budget, which covers capital expenditures, budgeted statement of cash
flows and balance sheet is classified as

A. financial budget
B. capital budget
C. cash flows budget
D. balanced budget

Answer A

MCQ. Third step in developing operating budget is

A. analysis of batches
B. analysis of batches
C. analysis of products
D. making predictions about future

Answer D

MCQ. Cost influences by responsibility center manager who is considered as

A. manager cost
B. influential cost
C. center cost
D. controllable cost

Answer D

MCQ. If indirect manufacturing labor is $20000, power cost is $5000, maintenance and supplies
are of $10000 then manufacturing budget will be

A. $5,000
B. $35,000
 C. $15,000
D. $45,000

Answer B

MCQ. Last step in developing operating budget is

A. implementing income
B. implementing decision
C. efficient implementation
D. effective implementation

Answer B

MCQ. In master budgeting, cost drivers for manufacturing overhead costs are

A. direct manufacturing labor-hours

B. setup labor-hours
C. budgeted labor-hours
D. both a and b

Answer D

MCQ. Document, which contains information about used material sequence, detail and quantity
of raw material is classified as

A. bill of materials
B. bill of sequence
C. bill of detail
D. bill of raw materials

Answer A

MCQ. Type of budget, which is always available for specified period of future is called

A. period budget
B. batch budget
C. discontinued budget
D. continuous budget

Answer D
MCQ. Plan of action; how an organization meets its opportunities and capabilities is classified
as

A. action plan
B. strategy
C. step wise plan
D. complex plan

MCQ. Focus on budget cost of all activities necessary to sell and produce market offerings is
known as

A. cost based budgeting

B. activity based budgeting
C. production based budgeting
D. raw material budgeting

Answer B

MCQ. Budgeted income statement and supporting budget schedules are categorized under

A. focused statement
B. slack statement
C. budgeted income statement
D. operating budget

Answer D

MCQ. If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is
1000, then budget production will be

A. 4000 units
B. 5000 units
C. 8000 units
D. 10000 units

Answer C

MCQ. Budget sales, plus target ending finished goods inventory, minus beginning finished
goods inventory is equal to

A. budget production
B. planned production
C. setup production
 D. stand by production

Answer A

MCQ. Budget, which predicts effect of given level of operations on a cash position is classified
as

A. market budget
B. price schedule
C. planned schedule
D. cash budget

Answer D

Answer B