Deck 6: Budgeting and Loss Calculation in Cost Accounting

Question 1

An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is................. kg

A)400
B)300
C)500
D)600

Answer 1

300

Question 2

Budgeting system…................ key managerial functions. School of Distance Education Cost Accounting Page 20

A)dismisses
B)integrates
C)discharges
D)none of these

Answer 2

integrates

Question 3

…….is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlierperiod.

A)rolling budget
B)continuous budget
C)annual budget
D)both a & b

Answer 3

both a & b

Question 4

The budget relating to.................... must be prepared first and the other budgets should be prepared in the light of that factor.

A)limiting factor
B)materials
C)labour
D)production

Question 5

…………………budget is the most important budget and it forms the basis on which all the other budgets are built up.

A)production
B)material
C)cash budget
D)sales

Question 6

…….budget may be classified into material cost budget, labour cost budget and overhead budget.

A)cost of production
B)purchase
C)sales
D)cash

Question 7

………budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

A)sales
B)production
C)cash
D)master

Question 8

……….is the consolidated summary of the various functional budgets.

A)master budget
B)sales budget
C)performance budget
D)cash budget

Question 9

…………..budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

A)master
B)fixed
C)flexible
D)all of these

Question 10

……….budget gives differentbudgeted costs for different levels of activity.

A)master
B)fixed
C)flexible
D)all of these

Question 11

…………………budget is the preparation of budget starting from a clean state.

A)performance
B)zero base
C)cash
D)none of these

Question 12

…………is a summary of all function budgets in a Capsule form.

A)master budget
B)sales budget
C)performance budget
D)cash budget