MCQ for CA Intermediate COSTING - Chapter 15 - BUDGETS AND BUDGETARY CONTROL

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING - Chapter 15: BUDGETS AND BUDGETARY CONTROL - For Practice relevant for May/November 23 Examinations

 

Q1. The classification of fixed and variable cost is useful for the preparation of: 

  1. Master budget
  2. Flexible budget
  3. Cash budget
  4. Capital budget

Answer: 2

Q2. Budget manual is a document:

  1. Which contains different type of budgets to be formulated only.
  2. Which contains the details about standard cost of the products to be made.
  3. Setting out the budget organization and procedures for preparing a budget including fixation of responsibilities, formats and records required for the purpose of preparing a budget and for exercising budgetary control system. 
  4. None of the above

Answer: 3

Q3. The budget control organization is usually headed by a top executive who is known as: 

  1. General manager
  2. Budget director/budget controller
  3. Accountant of the organization
  4. None of the above

Answer: 2

Q4. A budget report is prepared on the principle of exception and thus-

  1. Only unfavourable variances should be shown
  2. Only favourable variance should be shown
  3. Both favourable and unfavourable variances should be shown
  4. None of the above 

Answer: 3

Q5. Purchases budget and materials budget are same:  

  1.  Purchases budget is a budget which includes only the details of all materials purchased  
  2.  Purchases budget is a wider concept and thus includes not only purchases of materials but also other item’s as well 
  3. Purchases budget is different from materials budget; it includes purchases of other items only
  4. None of the above

Answer: 2

Q6. Efficiency ratio is: 

  1. The extent of actual working days avoided during the budget period
  2. Activity ratio/ capacity ratio
  3. Whether the actual activity is more or less than budgeted activity
  4. None of the above

Answer: 2

 

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