1) Which of the following statements are true for forcast and budget?
a. Forecast and budget are one and same thing
b. Budget is prepared after the forecast
c. Forecast and budget both can be expressed in financial form
d. All of the above
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Answer
Explanation
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ANSWER: Budget is prepared after the forecast
Explanation:
No explanation is available for this question!
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2) A budgeting process which demands each manager to justify his entire budget in detail from beginning is
a. Functional budget
b. Master budget
c. Zero base budgeting
d. None of the above
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Answer
Explanation
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ANSWER: Zero base budgeting
Explanation:
No explanation is available for this question!
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3) Given Production at 60% activity, 600 units, Material Rs 50 per unit, Labour Rs 20 per unit, Direct expenses Rs 5 per unit, Factory overheads Rs 20,000 ( 60% variable) and Administration expenses Rs 15,000 ( 60% fixed). What will be the total cost per unit for production at 80% capacity?
a. Rs 1,01,000
b. Rs 126.25
c. Rs 122
d. Rs 1,22,000
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Answer
Explanation
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ANSWER: Rs 126.25
Explanation:
No explanation is available for this question!
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4) A factory produces two types of articles Y and Z. Article Y takes 8 hours to make and Z takes 16 hours. In a month ( 25 days * 8 hours) 600 units of X and 400 units of Z are produced. Given budgeted hours 8000 per month and men employed are 50. Determine Activity ratio, Capacity ratio and efficiency ratio.
a. 112%, 140%, 140%
b. 140%, 112%, 140%
c. 140%, 140%, 112%
d. None of the above
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Answer
Explanation
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ANSWER: 140%, 140%, 112%
Explanation:
No explanation is available for this question!
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5) The process of budgeting helps in the control of
a. Cost of production
b. Liquidity
c. Capital Expenditure
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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6) Plant utilization budget and Manufacturing overhead budgets are types of
a. Production budget
b. Sales budget
c. Cost budget
d. None of the above
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Answer
Explanation
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ANSWER: Cost budget
Explanation:
No explanation is available for this question!
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7) R&D budget and Capital expenditure budget are examples of
a. Short-term budget
b. Current budget
c. Long-term budget
d. None of the above
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Answer
Explanation
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ANSWER: Long-term budget
Explanation:
No explanation is available for this question!
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8) Capacity ratio * Efficiency ratio = Activity ratio.
a. True
b. False
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Answer
Explanation
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ANSWER: True
Explanation:
No explanation is available for this question!
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9) The scare factors is also known as
a. Key factor
b. Abnormal factor
c. Linking factor
d. None of the above
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Answer
Explanation
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ANSWER: Key factor
Explanation:
No explanation is available for this question!
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10) Match the columns
A) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100
B) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100
C) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100
a. A-ii, B-iii, C-i
b. A-i, B-ii, C-iii
c. A-iii, B-i, C-ii
d. None of the above
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Answer
Explanation
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ANSWER: A-iii, B-i, C-ii
Explanation:
No explanation is available for this question!
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