Capital Budgeting MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 14, 2021

1. The use of budgets to control a firm's activities is called:

2. What is the term referring to management being held responsible for those items and only those items that management can actually control?

3. A 12-month budget that rolls forward (one month is added to the end of the budget as each month comes to a close) is called a:

4. A budget that requires management to justify all expenditures, rather than just changes from the previous year, is referred to as a:

5. Usually, the first step in the production of the master budget is the:

6. Which of the following is true about the company's direct materials budget?

7. Which of the following is not a section of the cash budget?


Next Quiz: Flexible Budgets

Leave a Comment