Cost Accounting Quiz 9 - Budgetary Control MCQ

What is a budget?

• A plan quantified in monetary terms

• A plan without monetary terms

• A summary of expenses only

• A summary of income only

What is the main purpose of budgeting?

• To increase stress

• To control employees

• To prioritize spending and manage money

• To create conflicts

What does a budget help you identify?

• New investment opportunities

• Unlimited spending options

• Wasteful expenditures

• Increased income sources

What is the definition of Budgetary Control according to CIMA?

• Not taking any corrective actions

• Ignoring budget plans

• Creating conflicts among employees

• Implementing budgets and making managers responsible for implementing it

What is the purpose of a Cash Budget?

• To prepare tax documents

• To plan marketing strategies

• To track employee attendance

• To estimate money receipts and payments

What is the main advantage of Zero Base Budgeting?

• Promotes operational efficiency

• Reduces motivation

• Creates conflicts among managers

• Increases stress levels

What is a disadvantage of traditional budgeting?

• Enhances resource allocation

• Improves communication with employees

• Promotes innovation at lower levels

• Demotivates employees due to lack of participation

What is the purpose of a Master Budget?

• To serve as a planning and control tool

• To reduce efficiency

• To increase costs

• To create confusion among employees

What is the main feature of a Flexible Budget?

• Remains fixed regardless of circumstances

• Does not require expertise

• Is difficult to prepare

• Changes as volume of output changes

What is the purpose of a Production Cost Budget?

• To prepare tax documents

• To show the estimated cost of production

• To plan marketing strategies

• To track employee attendance