Business Budgeting Fundamentals Quiz

Which of the following is NOT a main functional budget?

• Production budget

• Marketing budget

• Financial budget

• Human resources budget

What does the production budget focus on?

• Output levels required by the business

• Marketing strategies

• Employee training

• Customer service

Which costs are included in the production budget?

• Raw materials, direct labour, and other production costs

• Advertising expenses only

• Office supplies only

• Travel expenses only

What does the marketing budget combine?

• Revenues and costs

• Only revenues

• Only costs

• Only profits

What is the financial budget based upon?

• The business’s cash flow forecast

• The number of employees

• The amount of office space

• The company’s logo

What question does the financial budget address?

• Will income be able to cover expenditure?

• How many products to launch?

• Which employees to promote?

• What color to paint the office?

What should be done after setting the main budgets?

• Break the budget down further

• Ignore the budget

• Increase all expenditures

• Fire employees

What is the main focus of a production budget?

• Putting output levels into practice

• Maximizing marketing spend

• Reducing financial oversight

• Increasing office space

What is an example of a business objective that could influence budgets?

• Increasing sales by 20%

• Reducing office space

• Hiring more managers

• Changing the company logo

Why is it important to react to variances in budgets?

• To maintain financial control and achieve objectives

• To ignore financial issues

• To increase spending

• To reduce transparency