D Budgeting

Written by Mahnoor Sheikh (ACCA)

اے سی سی اے · مینجمنٹ اکاؤنٹنگ · 12 سوالات

نام: ____________________   تاریخ: ____________

1. What is the principal budget factor?

   • A The factor that managers like best
   • B The largest cost item in the budget
   • C The factor that limits the organisation's activity
   • D The final stage in preparing a budget

2. Sales are 8,000 units, opening inventory is 500 units and closing inventory is 700 units. What is the production budget?

   • A 8,200 units
   • B 7,800 units
   • C 9,200 units
   • D 8,000 units

3. Each unit needs 3 kg of material. Production is 8,200 units. Opening materials inventory is 1,000 kg and closing is 1,500 kg. What is the purchases budget in kg?

   • A 24,100 kg
   • B 25,100 kg
   • C 24,600 kg
   • D 26,100 kg

4. Which item would NOT appear in a cash budget?

   • A Wages paid
   • B Receipts from customers
   • C Depreciation
   • D Payment to suppliers

5. A budget has variable costs of $96,000 at 10,000 units and fixed costs of $40,000. What are the total costs flexed to 12,000 units?

   • A $136,000
   • B $155,200
   • C $115,200
   • D $160,000

6. Why is a flexible budget better for control than a fixed budget when activity differs from plan?

   • A It removes the need for variances
   • B It gives a lower cost target
   • C It ignores fixed costs
   • D It compares actual results with a budget for the same level of activity

7. An investment of $100,000 returns $40,000 a year for 3 years. The cost of capital is 10 percent. What is the NPV to the nearest dollar?

   • A -$20,000
   • B $20,000
   • C $526
   • D -$526

8. An investment of $100,000 returns $40,000 a year. What is the payback period?

   • A 2 years
   • B 0.4 years
   • C 2.5 years
   • D 3 years

9. A perpetuity of $5,000 a year is discounted at 8 percent. What is its present value?

   • A $40,000
   • B $400,000
   • C $5,400
   • D $62,500

10. $10,000 is invested for 3 years at 6 percent compound interest. What is the value at the end?

    • A $10,600
    • B $11,000
    • C $11,910
    • D $11,800

11. Which is an advantage of participative budgeting?

    • A Managers are more committed to achieving the budget
    • B It needs less management time
    • C It is faster than a top-down approach
    • D It removes the risk of budget slack

12. Under responsibility accounting, a manager is held accountable for:

    • A The costs and revenues the manager can control
    • B All of the costs of the organisation
    • C Costs that can only be influenced by others
    • D Only the company's profit