BUDGETING

Front

Which of the following is NOT a functional budget?

• Sales Budget
• Direct material budget
• Budgeted income statement
• Selling and administrative budget

Back

Budgeted income statement

Front

Budget refers to an estimation of income and expenditure.

Back

True

Front

Budget committee consists of: i) Head of department ii) Accountant iii) Budget review officer iv) COO

Back

All of the above

Front

... is prepared to show the expected number of units to be produced incorporating any stock levels to be maintained

Back

Production budget

Front

Key resources affecting budget process implementation: Cash, Raw materials, Tools and equipment, Machine.

Back

All of the listed resources (Cash, Raw materials, Tools and equipment, Machine) affect the implementation of the budget process.

Front

... is prepared to determine the expected expenses to be incurred for selling and distribution purposes.

Back

Selling and distribution budget

Front

What is categorized as a cash inflow in the cash budget? Options: Cash purchases, Wages, Cash sales, Payment to creditors.

Back

Cash sales

Front

... is prepared when there is an element of risk and uncertainty, and the future events cannot be forecasted realistically. Options: Activity based budgeting, Rolling/ Continuous budget, Incremental budgeting, Zero based budgeting.

Back

Rolling/ Continuous budget

Front

Beyond budgeting is an approach to overcome criticisms to traditional budgeting.

Back

Yes

Front

Advantages of Beyond Budgeting (identify the exception):
- Faster response
- High cost
- Innovative
- Use KPI to measure critical success factor

Back

High cost