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B Com Exam  >  B Com Test  >  Cost Management  >  Test: Budgetary Control - B Com MCQ

Budgetary Control - Free MCQ Practice Test with solutions, B Com Cost Management


MCQ Practice Test & Solutions: Test: Budgetary Control (10 Questions)

You can prepare effectively for B Com Cost Management with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Budgetary Control". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Budgetary Control - Question 1
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What is the primary purpose of budgetary control in an organization?

Detailed Solution: Question 1

Budgetary control in an organization primarily serves the purpose of controlling costs and achieving financial goals. It involves the preparation of budgets, coordination of departments, and comparing actual performance with budgeted figures to ensure efficient resource allocation and cost control.

Test: Budgetary Control - Question 2
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Which of the following is NOT an objective of budgetary control?

Detailed Solution: Question 2

The objective of budgetary control includes anticipating capital expenditure, eliminating waste, increasing profitability, fixing responsibilities, and more. However, it does not aim to determine the number of employees needed, as this falls under workforce planning, not budgetary control.

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Test: Budgetary Control - Question 3
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What is a key factor in the context of budgetary control?

Detailed Solution: Question 3

A key factor in budgetary control is a factor that influences all other budgets within an organization. It has a significant impact on resource allocation and decision-making across various departments.

Test: Budgetary Control - Question 4
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What does Zero Base Budgeting (ZBB) require managers to do?

Detailed Solution: Question 4

Zero Base Budgeting (ZBB) requires managers to justify their entire budget requests from scratch, without assuming that existing activities and expenses are automatically approved. It involves a systematic review and evaluation of all budget items.

Test: Budgetary Control - Question 5
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In the context of budgetary control, what does a budget centre refer to?

Detailed Solution: Question 5

In budgetary control, a budget centre refers to a department or section within an organization for which a budget is prepared. Each budget centre represents a specific part of the organization.

Test: Budgetary Control - Question 6
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What is the primary purpose of a sales budget?

Detailed Solution: Question 6

The primary purpose of a sales budget is to develop a plan for future sales. It helps in setting sales targets and objectives for a specific budget period, guiding operational efforts toward achieving those goals.

Test: Budgetary Control - Question 7
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What does a performance budget focus on in an organization?

Detailed Solution: Question 7

A performance budget focuses on achieving specific performance objectives within an organization. It is a work plan that aims to align activities with organizational goals and objectives.

Test: Budgetary Control - Question 8
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What is the main advantage of using Zero Base Budgeting (ZBB)?

Detailed Solution: Question 8

The main advantage of Zero Base Budgeting (ZBB) is that it motivates managers to find cost-effective solutions and encourages them to critically evaluate budget requests, leading to potential cost savings and improved efficiency.

Test: Budgetary Control - Question 9
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What is the purpose of a budget manual in the budgetary control process?

Detailed Solution: Question 9

The purpose of a budget manual in the budgetary control process is to specify the relations among various functionaries involved in budget preparation and implementation. It outlines duties and responsibilities.

Test: Budgetary Control - Question 10
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How does budgetary control help in an organization's decision-making process?

Detailed Solution: Question 10

Budgetary control helps in an organization's decision-making process by providing a systematic method for evaluating performance, comparing actual results with budgeted figures, and making informed decisions based on deviations and performance data.

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About this B Com Practice Test

This test contains 10 MCQs on Budgetary Control with detailed solutions for each question. It is part of the Cost Management course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Budgetary Control MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Cost Management course. The course offers:
  • Video Lectures: covering all the topics of Cost Management
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  • MCQ Test: variety of questions as per the pattern of B Com exam
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