Budgets and Budgeting Cycle MCQ (Multiple Choice Questions) PDF Download

The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets are classified as

1. financial budget
2. capital budget
3. cash flows budget
4. balanced budget

The third step in developing operating budget is

1. analysis of batches
2. analysis of batches
3. analysis of products
4. making predictions about future

If the indirect manufacturing labor is $20000, power cost is $5000, maintenance and supplies are of $10000 then the manufacturing budget will be

1. $5,000
2. $35,000
3. $15,000
4. $45,000

The last step in developing operating budget is

1. implementing income
2. implementing the decision
3. efficient implementation
4. effective implementation

In master budgeting, the cost drivers for manufacturing overhead costs are

1. direct manufacturing labor-hours
2. setup labor-hours
3. budgeted labor-hours
4. both a and b