Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer