Budgets and Budgeting Cycle Multiple Choice Questions with Answers – 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