Question 178. : Which of the following is not a step for successful implementation of the budgetary control system? (A) Budget manual (B) Budget controller (C) Budget period (D) Budget standard Answer: (D) Budget standard
Question 179. : Assertion (A): The purpose of performance budgeting is to focus on work to be done and services to be rendered. Reason (R): The main purpose of performance budgeting is not to interrelate physical and financial aspect of every programme, project or activity. Select the correct answer from the options given below. (A) Both A and Rare true and R is correct explanation of A. (B) Both A and R true but R is not correct explanation of A. (C) A is true but R is false (D) A is false but R is true Answer: (C) A is true but R is false
Question 12. (A) Machinery bought on hire purchase (B) Depreciation of machinery (C) Sales revenue (D) Wages Answer: (B) Depreciation of machinery
Question 24. Advantages of maintaining cash budgets would not include one of the following: (A) Surplus cash can rapidloan.net/payday-loans-ma/ be put to more profitable uses if expected to occur (B) Debtors can be paid more quickly (C) Time is available to investigate the possible future sources of finance (D) Overdrafts can be negotiated in advance of when they are needed Answer: (B) Debtors can be paid more quickly
Question 39. Which of the following factors is not a responsibility of the budget committee? (A) Reviews the budget (B) Provides policy guidelines (C) Provides budgeting goals (D) Prepares actual financial statements Answer: (D) Prepares actual financial statements
Question 52. Which of the following statement(s) is/are true? (A) A formula used in developing a flexible budget is: Total budgeted cost = fixed cost + (total variable cost per unit X activity level) (B) Flexible budgets are widely used in production and service departments. (C) Flexible budgets are widely used in production and service departments. (D) All of the above Answer: (D) All of the above
Question 64. If a company plans to sell 16,000 units of product but sells 20,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on (A) The original planned level of activity (B) 18,000 units of activity (C) 20,000 units of activity (D) 16,000 units of activity Answer: (C) 20,000 units of activity
Question 80. ………… may be defined as analysis and interpretation of the future conditions in relation to operations of the enterprise. (A) Budgeting (B) Value analysis (C) Control management (D) Forecasting Answer: (D) Forecasting
The amount of cash received in quarter 3 will be (A) ? 2,76,000 (B) ? 1,44,000 (C) ? 3,24,000 (D) ? 2,40,000 Answer: (A) ? 2,76,000
Question 93. The budgeted sales for the next four quarters are ? 1,92,000, ? 2,88,000, ? 2,88,000 ? 3,36,000, respectively. It is estimated that sales will be paid for as follows: 75% of the total will be paid in the quarter that the sales were made. Of the balance 50% will be paid in the quarter after the sale was made. The remaining 50% will be paid in the quarter after this.
Question 102. What is the sales budget for the X Ltd.? (A) ? 15,000 (B) ? 15,00,000 (C) ? 1,00,000 (D) ? 1,50,000 Answer: (B) ? 15,00,000 1,00,000 ? 15 = 15,00,000
Question 111. The master budget of Benedict Company shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
The cash collected – in the month of from debtors is – (A) ? 14,60,000 (B) ? 14,20,000 (C) ? 12,20,000 (D) ? 9,15,000 Answer: (D) ? 9,15,000
Question 122. P Ltd. has prepared its expense budget for 20,000 units in its factory for the year 2015 as detailed below:
Question 137. : In Rise Ltd., cash sales is 2596 and credit sales 7596. Sales for ? 14,00,000, ? 10,00,000 and ? 9,00,% of the credit sales are collected in the next month after sales, 30% in the second month and 10% in the third month. No bad debts are anticipated.
If the actual production during the period was 60,000 units, the revised budget cost per unit will be (A) ? 740 (B) ? 800 (C) ? 700 (D) ? 840 Answer: (A) ? 740
Question 163. : One of the most significant tools in cost planning is: (A) Direct material (B) Budget (C) Marginal costing (D) Direct labour Answer: (B) Budget
Question 177. : The following information extracted from the records of P Ltd. Sales for are ? 90,000, ? 1,10,000 and ? 80,000 respectively. 40% of its sales are expected to be for cash. Of its credit sales 70% are expected to pay in the month after sales and take 2% discount on it. Balance is expected to pay in second month after sales and 3% of it is expected to bad debts. What are the sales receipts to be shown in cash budget for the month of December? (A) ? 92,990 (B) ? 1,23,174 (C) ? 95,609 (D) ? 1,25,793 Note: MCQ is wrongly drafted; for further clarification please see the hints.