Budgetary Control Quiz

What is the primary goal of budgetary control?

• Increase revenue

• Reduce expenses

• Ensure financial goals and objectives are achieved by identifying variances and taking corrective actions

• Improve employee satisfaction

Which type of budget consolidates all individual budgets within the organization?

• Operating Budget

• Capital Budget

• Cash Budget

• Master Budget

What type of budget focuses on day-to-day operations, including revenue and expense projections?

• Capital Budget

• Operating Budget

• Flexible Budget

• Zero-Based Budget

Which budget deals with long-term investments and capital expenditures?

• Cash Budget

• Operating Budget

• Capital Budget

• Flexible Budget

A budget that adjusts based on actual activity levels is known as:

• Master Budget

• Zero-Based Budget

• Operating Budget

• Flexible Budget

What is the first step in the budgetary control process?

• Preparing Budgets

• Setting Objectives

• Monitoring and Analysis

• Variance Analysis

Which process involves investigating significant variances to understand their causes?

• Setting Objectives

• Monitoring and Analysis

• Variance Analysis

• Taking Corrective Actions

What is a benefit of budgetary control?

• Increased spending

• Financial discipline

• Reduced planning

• Eliminates the need for strategic planning

What is a challenge of budgetary control?

• Ensures accuracy of projections

• Promotes flexibility and innovation

• Can be time-consuming

• Guarantees employee satisfaction

Which type of budget requires every expense to be justified for each new period?

• Master Budget

• Operating Budget

• Zero-Based Budget

• Flexible Budget