Question 65. Within the relevant range of activity, the behaviour of total costs is assumed to be: (A) Linear and upward sloping (B) Linear and downward sloping (C) Curvilinear and upward sloping (D) Linear to bad credit online installment loans Indiana a point and then level off Answer: (A) Linear and upward sloping
(2) Unfavourable differences that are not justified. Select the correct answer from the options given below. (A) (1) (B) (2) (C) Both (1) (2) (D) Neither (1) or (2) Answer: (C) Both (1) (2)
Question 67. Under management by exception, which differences between planned and actual results should be investigated? (A) Material and non-controllable (B) Controllable and non-controllable (C) Material and controllable (D) All differences should be investigated Answer: (C) Material and controllable
A flexible budget depicted graphically… (A) Is identical to a CVP graph (B) Differs from a CVP graph in the way that fixed costs are shown (C) Differs from a CVP graph in the way that variable costs are shown (D) Differs from a CVP graph in that sales revenue is not shown Answer: (D) Differs from a CVP graph in that sales revenue is not shown
Question 69. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called ……. (A) Static reporting (B) Flexible accounting (C) Responsibility accounting (D) Master budgeting Answer: (C) Responsibility accounting
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Question 70. Which of the following would NOT be considered an aspect of budgetary control? (A) It assists in the determination of differences between actual and planned results. (B) It provides feedback value needed by management to see whether actual operations are on course. (C) It assists management in controlling operations. (D) It provides a guarantee for favourable results Answer: (D) It provides a guarantee for favourable results
Question 72. A flexible budget requires a careful study of ………… (A) Fixed, semi-fixed and variable expenses (B) Past and current expenses (C) Overheads, selling and administrative expenses (D) None of the above Answer: (A) Fixed, semi-fixed and variable expenses
Question 73. Sales budget is a …… (A) Expenditure budget (B) Functional budget (C) Master budget (D) None of the above Answer: (B) Functional budget
Question 74. The budget that is prepared first of all is …………. (A) Master budget (B) Budget, with key factor (C) Cash Budget (D) Capital expenditure budget Answer: (D) Capital expenditure budget
Question 75. Which of the following is a long-term budget? (A) Master Budget (B) Flexible Budget (C) Cash Budget (D) Capital Budget Answer: (D) Capital Budget
Question 76. Budgets are shown in terms. (A) Qualitative (B) Quantitative (C) Materialistic (D) Both (B) and (C) Answer: (D) Both (B) and (C)
Question 77. ………. may be defined as, “planning and budgeting processes which requires each managers to justify his entire budget request in details from scratch and shifts the burden of proof to each manager to justify why he should spend any money at all. (A) Zero base budgeting (B) Past base budgeting (C) Master budgeting (D) Performance budgeting Answer: (A) Zero base budgeting
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Question 78. ……… is a period for which various reports are submitted to take corrective actions by the management. (A) Control period (B) Budget period (C) Accounting period (D) All of the above Answer: (A) Control period
Question 79. The …. is concerned with estimating the probable output of each product in the forthcoming budget period. (A) Production budget (B) Sales budget (C) Purchase budget (D) None of the Above. Answer: (A) Production budget
