Budgeting and Responsibility Accounting Multiple Choice Questions with Answers – PDF Download

MCQ 1: The difference between the budgeted amounts and the actual results is classified as:

1. standard deviation
2. variances
3. mean average
4. weighted average

MCQ 2: A manager who is responsible for only the cost of the company belongs to:

1. cost center
2. revenue center
3. profit center
4. investment center

MCQ 3: A manager, who is responsible for the both cost and revenues belong to the department of:

1. cost center
2. revenue center
3. profit center
4. investment center

MCQ 4: The larger number of manager subordinates and the higher level manager are termed as:

1. activity subordinates
2. broader responsibility center
3. broader subordinates
4. activity ordinates

MCQ 5: An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as:

1. coordinating the company effort
2. action plan
3. action accountability
4. project accountability