Top 50+ Solved Budgetary Control MCQ Questions Answer
Q. Budget is prepared for a…
a. indefinite period
b. definite period
c. period of one year
d. six months
Q. A budget is tool which helps the management in planning and control of…
a. all business activities
b. production activities
c. purchase activities
d. sales activities
Q. Budgetary control system acts as a friend, philosopher and guide to the…
a. management
b. share holders
c. creditors
d. employees
Q. Budgetary control system defines the objectives and policies of the…
a. production department
b. finance department
c. marketing department
d. all
Q. Budgetary control facilitates easy introduction of the…
a. marginal costing
b. ratio analysis
c. standard costing
d. subjective matter
Q. Budgetary control helps the management in…
a. obtaining bank credit
b. issue of shares
c. getting grants from government
d. all of these
Q. Budgetary control system helps the management to eliminate…
a. undercapitalization
b. overcapitalization
c. both
d. subjective matter
Q. Budgetary control provides a basis for…
a. bonus shares
b. rights shares
c. remuneration plans
d. none
Q. Budgetary control helps to introduce a suitable incentive and remuneration basedon…
a. changes in government policies
b. inflationary conditions
c. both
d. none
Q. The success of budgetary control system depends upon the willing cooperation of…
a. shareholders
b. management
c. creditors
d. all the functional areas of management
Q. Recording of actual performance is….
a. an advantage of budgetary control
b. a step in budgetary control
c. a limitation of budgetary control
d. none
Q. Frequent revision of budgets will…
a. affects its reliability
b. increase the accuracy
c. both
d. subjective matter
Q. Budget period is the…
a. period of budget committee
b. period of budget centres
c. period for which a budget is prepared
d. period of budget officer