Budgeting

Which of the following is not a function of budgeting?

• Planning

• Controlling

• Motivating

• Decision making

The term 'budgetary period' relates to:

• A specific year for which the budget has been prepared

• The period for which the budget is prepared

• The subdivisions of the main budget

• The period in which the budget is finalised

Which of the following will not appear in a cash budget?

• Sales revenue

• Depreciation of machinery

• Wages

• Machinery bought on lease

When a production budget is being prepared the quantity that needs to be produced is calculated by the following equation:

• Budgeted sales less closing stock plus opening stock

• Budgeted sales less opening stock

• Budgeted sales plus closing stock less opening stock

• Budgeted sales less closing stock less opening stock

The three principle part of master budget are:

• Cash budget, Sales budget, production budget

• All the production, selling and cost budgets for the organisation.

• The budgeted income statement and the budgeted balance sheet, sales budget

• The cash budget, the budgeted income statement and the budgeted balance sheet

A budgeting process which demands each manager to justify his entire budget in detail from beginning is

• Master budgeting

• Zero base budgeting

• Annual budgeting

• None of the above

The use of budgets to control a firm’s activities is called:

• Budget planning

• Budgetary control

• Master budget allocation

• Budget costing

Usually, the first step in the production of the master budget is the:

• Sales forecast

• Cash Budget

• Production budget

• Sales budget

Which of the following is not a section of the Cash budget?

• Cash receipts

• Cash excess or deficiency

• Financing - Borrowing/Repayment

• All of the above are a part of the Cash budget

A budget is 'accepted' by managers when they:

• Receive the budget in writing

• Are consulted by top management

• Agree to it verbally

• Relates it to their own personal objectives