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Total Questions : 195 | Page 4 of 20 pages
Question 31. The direct labor, salary outlays and direct material purchases are classified as
  1.    price disbursements
  2.    cash disbursements
  3.    budget disbursements
  4.    goods disbursements
 Discuss Question
Answer: Option B. -> cash disbursements
Answer: (b).cash disbursements
Question 32. The master budget includes all the projections of company's budget and focuses on
  1.    serial correlation
  2.    marketing plan
  3.    financial plan
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 33. The model which refers possibility for management to conduct sensitivity analysis can be categorized under
  1.    investment planning models
  2.    financial planning models
  3.    cost planning models
  4.    revenues forecast models
 Discuss Question
Answer: Option B. -> financial planning models
Answer: (b).financial planning models
Question 34. The what-if technique, which examines changes in results, if original prediction would not be achieved is called
  1.    change analysis
  2.    original analysis
  3.    sensitivity analysis
  4.    predicted analysis
 Discuss Question
Answer: Option C. -> sensitivity analysis
Answer: (c).sensitivity analysis
Question 35. The fourth step in development of operating budget is to
  1.    choose alternatives
  2.    evaluate alternatives
  3.    efficiency improvements
  4.    predicted improvements
 Discuss Question
Answer: Option A. -> choose alternatives
Answer: (a).choose alternatives
Question 36. The continuous budget is also known as
  1.    rolling budget
  2.    pin budget
  3.    specific budget
  4.    past budget
 Discuss Question
Answer: Option A. -> rolling budget
Answer: (a).rolling budget
Question 37. The first step in developing an operating budget is to
  1.    identify the product
  2.    identify the problem
  3.    identify the quartiles
  4.    identify the percentiles
 Discuss Question
Answer: Option B. -> identify the problem
Answer: (b).identify the problem
Question 38. The budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as
  1.    annual budget
  2.    operating budget
  3.    specific budget
  4.    master budget
 Discuss Question
Answer: Option D. -> master budget
Answer: (d).master budget
Question 39. The factor which provides hedge to managers in adverse and unexpected circumstances is known as
  1.    budgetary slack
  2.    costly slack
  3.    influential slack
  4.    target slack
 Discuss Question
Answer: Option A. -> budgetary slack
Answer: (a).budgetary slack
Question 40. The second step in developing operating budget is to
  1.    plan coordination
  2.    plan accounts
  3.    obtain information
  4.    coverage information
 Discuss Question
Answer: Option C. -> obtain information
Answer: (c).obtain information

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