WorksheetsBudgeting and Budgetary Control Quiz
Total questions: 20
Worksheet time: 11mins
What is a budget?
A plan for the past
A method of saving money
A quantitative expression of a plan for a defined period
A type of financial report
Which of the following is NOT a characteristic of a budget?
A verbal agreement
Prepared for a future period
A written document
A plan of action
What is the main objective of budgeting?
To create confusion
To aid in planning and controlling
To increase costs
To avoid communication
What does the Budgetary Control Cycle involve?
Only preparing plans
Comparing actual performance with budget
Ignoring variances
Only revising the budget
Which budgeting approach starts from the top management?
Top-down budgeting
Participatory budgeting
Incremental budgeting
Bottom-up budgeting
What is a disadvantage of bottom-up budgeting?
Encourages participation
Provides detailed understanding
Time-consuming process
Increases motivation
What does zero-based budgeting require?
Only focusing on fixed costs
Using last year's budget as a base
Ignoring all previous budgets
Justification of all budgeted expenditures
What is a rolling budget?
A budget that is fixed for a year
A budget that ignores past performance
A budget that is only reviewed once a year
A budget that is continuously updated
What is the main focus of activity-based budgeting?
Departmental budgets
Specific activities or tasks
Historical data
Random spending
What does Kaizen budgeting emphasize?
Large budget changes
Ignoring employee feedback
Continuous improvement
Strict control over costs
What is a fixed budget?
A budget that is flexible
A budget prepared for one level of output
A budget that is only for emergencies
A budget that changes frequently
What is the purpose of a flexible budget?
To ignore actual performance
To adjust for changes in activity levels
To complicate the budgeting process
To remain unchanged
What is the first step in the government budgeting process?
Budget Oversight
Budget Implementation
Budget Preparation and Formulation
Budget Debating and Approval
What is the financial year in Tanzania?
1 July to 30 June
January to December
1 January to 31 December
April to March
The company budget for material is TZS 140,000. The company has estimated to produce 7000 units, however during the year actual material cost were 143,000 and output actually produced turnout to be 7500. Compute material cost variance.
TZS 3000 Adverse
TZS 3000 Favourable
TZS 7000 Favourable
TZS 7000 Adverse
Goal Congruence is an advantage that can be attained when using which of the following budgeting approach?
Top Down Budgeting
Bottom Up Budgeting
Participatory Budgeting
Flexible Budgeting
Which of the following are likely to be the sources of central government revenue in Tanzania?
Tax on Imports
Foreign Loans and Donations
Income Taxation
Service levy
Local government budgeting process is guided by which of the following organization?
NAOT
TAMISEMI
Ministry of Finance
National Assembly
The PBG are a set of instructions approved annually by Cabinet which are meant to guide MDAs, Regions and Local Government Authorities (LGAs) on how to prepare their annual plans, programmes and budgets.
True
False
Budgetary Control Cycle includes the following activities except........................
Setting of Plans
Computing Variance
Taking Corrective Actions
Revising Budget based on controllable factors
