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

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


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

You can prepare effectively for B Com Cost Accounting 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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Which term refers to a quantitative statement for a defined period of time that includes planned revenues, expenses, assets, liabilities, and cash flows?

Detailed Solution: Question 1

A budget is a quantitative statement for a defined period of time that includes planned revenues, expenses, assets, liabilities, and cash flows. It serves as a financial plan expressed in terms of money.

Test: Budgetary Control - Question 2
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What is the process of building budgets called?

Detailed Solution: Question 2

Budgeting is the process of building budgets. It involves the preparation, implementation, and operation of a budget, which guides managers in the decision-making process.

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Test: Budgetary Control - Question 3
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What is the system of using budgets for planning and controlling costs called?

Detailed Solution: Question 3

Budgetary control is the system of using budgets for planning and controlling costs. It involves establishing budgets, comparing actual results with budgeted results, and taking corrective action to achieve the objectives outlined in the budget.

Test: Budgetary Control - Question 4
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Which type of budget remains unchanged irrespective of the volume of output or turnover attained?

Detailed Solution: Question 4

A fixed budget is a budget that remains unchanged irrespective of the volume of output or turnover attained. It does not provide for any changes in expenditure based on changes in activity levels.

Test: Budgetary Control - Question 5
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What is a comprehensive projection of how management expects to conduct all aspects of business over a budget period called?

Detailed Solution: Question 5

A master budget is a comprehensive projection of how management expects to conduct all aspects of business over a budget period, usually a fiscal year. It summarizes projected activity through a cash budget, budgeted income statement, and budgeted balance sheet.

Test: Budgetary Control - Question 6
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Which type of budget is prepared after making an intelligent classification of expenses between fixed, semi-variable, and variable costs?

Detailed Solution: Question 6

A flexible budget is prepared after making an intelligent classification of expenses between fixed, semi-variable, and variable costs. It provides different budgeted costs for different levels of activity.

Test: Budgetary Control - Question 7
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What type of budget is designed to change in accordance with the level of activity actually attained?

Detailed Solution: Question 7

A flexible budget is designed to change in accordance with the level of activity actually attained. It recognizes the difference in behavior between fixed and variable costs and adjusts accordingly.

Test: Budgetary Control - Question 8
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What type of budget involves the inflows and outflows of cash in a business on a day-to-day basis?

Detailed Solution: Question 8

A cash flow budget involves the inflows and outflows of cash in a business on a day-to-day basis. It predicts a company's ability to take in more money than it pays out and helps monitor shortfalls and financing needs.

Test: Budgetary Control - Question 9
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Which budget outlines how a business receives and spends money on a corporate scale, including revenues from core business and capital expenditures?

Detailed Solution: Question 9

A financial budget outlines how a business receives and spends money on a corporate scale, including revenues from the core business and capital expenditures. It helps manage assets and plan for financing needs.

Test: Budgetary Control - Question 10
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What is the term for a budget that remains fixed over a given period and does not change with the change in the volume of production or level of activity attained?

Detailed Solution: Question 10

A fixed budget is a budget that remains fixed over a given period and does not change with the change in the volume of production or level of activity attained. It does not provide for any changes in expenditure based on changes in activity levels.

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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 Accounting 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 Accounting course. The course offers:
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  • MCQ Test: variety of questions as per the pattern of B Com exam
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