CA Intermediate Paper 3

Budget and Budgetary Control MCQ

Chapter 15 • 9 Questions from ICAI Study Material

Questions

9

Est. Time

14 min

Source

ICAI Book

Sample Questions: Budget and Budgetary Control

Preview 3 of 9 questions from Chapter 15

1. If a company wishes to establish a factory overhead budget system in which estimated costs can be derived directly from estimates of activity levels, it should prepare a:

A) Master budget
B) Cash budget
C) Flexible budget ✓
D) Fixed budget

2. The classification of fixed and variable cost is useful for the preparation of:

A) Master budget
B) Flexible budget ✓
C) Cash budget
D) Capital budget

3. Budget manual is a document:

A) Which contains different type of budgets to be formulated only.
B) Which contains the details about standard cost of the products to be made.
C) Setting out the budget organization and procedures for preparing a budget including fixation of responsibilities, formats and records required for the purpose of preparing a budget and for exercising budgetary control system. ✓
D) None of the above