Unit 17:Types of Budgets and Process - Quiz

Buying new machinery is an example of:

• Operating expense

• Capital expenditure

• Cash shortage

• Variable cost

Which type of budget is most important for seasonal businesses?

• Sales budget

• Capital budget

• Cash flow budget

• Zero-based budget

Utilities and raw material costs would be classified under:

• Operating budget

• Capital budget

• Strategic budget

• Long-term forecast

Which budget helps plan for future growth and expansion?

• Cash flow budget

• Capital budget

• Operating budget

• Sales budget

A cash flow budget focuses primarily on:

• Profits

• Investments

• Liquidity

• Taxes

What is the first step in the budgeting process?

• Estimate costs

• Set financial goals

• Monitor results

• Approve the budget

After setting goals, what comes next?

• Review results

• Forecast revenue

• Borrow funds

• Finalize implementation

Which step involves estimating how much the business will spend?

• Forecasting revenue

• Setting goals

• Estimating costs

• Monitoring

Comparing forecasted results to goals occurs in which step?

• Revenue forecasting

• Monitoring

• Evaluation & adjustment

• Implementation

Why must budgets be monitored and revised?

• To avoid taxes

• To reflect changing conditions

• To increase marketing only

• To eliminate salaries