Budget and budgetary control

What is the primary purpose of

budgetary control

• To create financial reports

• To control and plan financial activities

• To set employee salaries

• To conduct Market research

Answer explanation

Which budget is prepared to forecast cash flows and cash requirements

• Operating budget

• Capital budget

• Cash budget

• Master budget

What does a flexible budget allow for

• Only fixed expenses

• Only variable expenses

• Both fixed and variable expenses

• Neither fixed nor variable expenses

Which budget compares actual performance with budgeted performance

• Static budget

• Master budget

• Flexible budget

• Actual budget

What is zero budgeting

• Starting with zero expenses and justifying each cost

• Allocating the same budget as the previous year

• Ignoring budgeting for certain departments

• Setting an arbitrary budget without analysis

What is the primary purpose of budgetary control?

• To create financial reports

• To control and plan financial activities

• To set employee salaries

• To conduct market research

Which budget is prepared to forecast cash flows and cash requirements?

• Operating budget

• Capital budget

• Cash budget

• Master budget

What does a flexible budget allow for

• Only fixed expenses

• Only variable expenses

• Both fixed and variable expenses

• Neither fixed nor variable expenses

Which budget compares actual performance with budgeted performance?

• Static budget

• Master budget

• Flexible budget

• Actual budget

What is zero-based budgeting?

• Starting with zero expenses and justifying each cost

• Allocating the same budget as the previous year

• Ignoring budgeting for certain departments

• Setting an arbitrary budget without analysis