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

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: The last step in developing operating budget is

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

MCQ 5: 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