Top 150+ Solved Cost and Management Accounting MCQ Questions Answer
Q. Preparing budget figures for different levels of activity within a range under flexible budgeting is .
a. Formula method.
b. Multi-activity method.
c. Budget cost allowance method.
d. Proportionate metho
Q. What type of budget is designed to take into account forecast change in costs, prices, etc?
a. Master budget.
b. Rolling budget.
c. Flexible budget .
d. Functional budget.
Q. Operation budgets normally cover a period of .
a. one to ten years.
b. one to two years.
c. one to five years.
d. one year or less.
Q. The entire process of preparing the budgets is known as .
a. Planning.
b. Organizing.
c. Budgeting.
d. Controlling.
Q. Budget designed to remain constant irrespective of the level of activity attained is called .
a. Fixed budget.
b. Flexible budget.
c. Sales budget.
d. Production budget
Q. The budget which shows the budgeted quantity of output to be produced during a specific period is.
a. Fixed budget.
b. Flexible budget.
c. Sales budget.
d. Production budget
Q. Material consumption budget is prepared on the basis of .
a. Production budget.
b. Sales budget.
c. Fixed budget.
d. Flexible budget.
Q. Material budget consists of two parts, one is the consumption budget and another Is .
a. Material purchase budget.
b. Material sales budget.
c. Material production budget.
d. Material budget.
Q. Materials purchase budget is prepared on the basis of .
a. Material sales budget.
b. Material consumption budget.
c. Material production budget.
d. Material budget.
Q. Labour budget is a part of .
a. Fixed budget.
b. Sales budget.
c. Production budget.
d. Flexible budget.
Q. Labour budget is prepared by .
a. Personnel department.
b. Sales department.
c. Purchase department.
d. Accounts department.
Q. Budget of indirect costs in the form of indirect wages, indirect material and indirect expenses in the factory is .
a. Production overhead budget.
b. Administration overhead budget.
c. Selling and distribution overhead budget.
d. Master budget.
Q. The budget prepared to estimate the expenditure to be incurred for planning, organizing, direction and control function of the management is .
a. Production overhead budget.
b. Administration overhead budget.
c. Selling and distribution overhead budget.
d. Master budget.