Budgets and Budgeting Cycle MCQ (Multiple Choice Questions) PDF - 186

MCQ 926: The continuous budget is also known as

1. rolling budget
2. pin budget
3. specific budget
4. past budget

MCQ 927: If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be

1. $38,500
2. $48,500
3. $58,500
4. $13,500

MCQ 928: The second step in developing operating budget is to

1. identify variable overhead cost
2. compute the per unit rate
3. choose the budgeting period
4. select allocation bases

MCQ 929: According to net present value, the projects that would be acceptable must have a

1. negative net present value
2. zero net present value
3. positive net present value
4. both b and c

MCQ 930: The reorder point is divided by number of sold units for per unit of time to calculate

1. relevant carrying cost
2. relevant ordering cost
3. purchase order lease time
4. number of purchase orders