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BUDGETING

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

It’s a proactive approach to organizing your finances.

a)

Budgetary Control

b)

Budgeting

c)

Incremental Budgeting

2.

It is a number you arrive at by subtracting your estimated cost from revenue.

a)

One-Time Expenses

b)

Estimated Revenue

c)

Profit

3.

This is the money that travels in and out of the business.

a)

Fixed Costs

b)

Variable Costs

c)

Cash Flow

4.

is a combination of all other budgets prepared for a specific period. It shows the overall budget plan.

a)

Master Budget

b)

Production Budget

c)

Sales Budget

5.

gives the details of material purchases to be made in the budget period.

a)

Materials Budget

b)

Purchase Budget

c)

Direct Labor Budget

6.

It is a part of Overhead Budget where it includes the costs of framing policies, directing the organization and controlling the business operations.

a)

Selling and Distribution Overhead Budget

b)

Administration Overhead Budget

c)

Manufacturing Overhead Budget

7.

It is also known as variable or sliding sale budget, is a budget which is designed to furnish targeted costs for any level of activity actually attained.

a)

Cash Budget

b)

Fixed Budget

c)

Flexible Budget

8.

All are Method of Budgeting, except for?

a)

Zero-Based Budgeting

b)

Production Budgeting

c)

Activity-Based Budgeting

d)

Incremental Budgeting

9.

Which is not an advantage of Incremental Budgeting?

a)

Budgetary slack

b)

Easy to implement

c)

Funding stability

d)

Operational stability

10.

Which is not an advantage of Active-Based Budgeting?

a)

Evaluation

b)

Competitive edge

c)

Resource consumption

d)

Business as a unit