1. The budget relating to ………….must be prepared first and the other budgets should be prepared in the light of that factor.

(A) Limiting factor
(B) materials
(C) labour
(D) production



2. …………………budget is the most important budget and it forms the basis on which all the other budgets are built up.

(A) Production
(B) material
(C) cash budget
(D) sales



3. ………………….budget may be classified into material cost budget, labour cost budget and overhead budget.

(A) Cost of Production
(B) purchase
(C) sales
(D) Cash



4. ……………….budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

(A) Sales
(B) Production
(C) Cash
(D) Master



5. ……………….is the consolidated summary of the various functional budgets.

(A) Master Budget
(B) Sales budget
(C) Performance budget
(D) Cash Budget



6. …………………budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

(A) Master
(B) Fixed
(C) Flexible
(D) all of these



7. …………………budget gives different budgeted costs for different levels of activity.

(A) Master
(B) Fixed
(C) Flexible
(D) all of these



8. …………………budget is the preparation of budget starting from a clean state.

 (A) Performance
(B) Zero Base
(C) Cash
(D) none of these



9. Calendar Ratio =

(A) Number of actual working days in a period x 100
        Number of working days in the budget period
(B) Actual hours worked x 100
          Budgeted hours
(C) Standard hours for actual production x 100
            Actual hours worked
(D) Standard hours for actual production x 100
        Budgeted standard hours


10. Capacity Ratio =

(A) Number of actual working days in a period x 100
       Number of working days in the budget period
(B) Actual hours worked x 100
          Budgeted hours
(C) Standard hours for actual production x 100
          Actual hours worked
(D) Standard hours for actual production x 100
           Budgeted standard hours




More MCQs on Cost Accounting