Welcome to your Budgeting Diploma Exam

Read the following articles:

Start the exam ⇓

1 / 40

In preparing a corporate master budget, which one of the following is most likely to be prepared last?

2 / 40

Which one of the combinations listed correctly depicts the chronological order of preparation for the following budgets?

I. Cost of goods sold budget
II. Production budget
III. Purchases budget
IV. Administrative budget

3 / 40

Wilson Company uses a comprehensive planning and budgeting system. The proper order for Wilson to prepare certain budget schedules would be:

4 / 40

Ineffective budget control systems are characterized by:

5 / 40

All of the following are considered operating budgets except the:

6 / 40

A budget helps a company control costs by setting cost guidelines. However, a budget also performs the function(s) of:

7 / 40

An advantage of participative budgeting is that it:

8 / 40

When budgeting, the items to be considered by a manufacturing firm in going from a sales quantity budget to a production budget would be the:

9 / 40

One approach for developing standard costs incorporates communication, bargaining, and interaction among product line managers; the immediate supervisors for whom the standards are being developed; and the accountants and engineers before the standards are accepted by top management.

This approach would best be characterized as a(n):

10 / 40

Which one of the following best describes the order in which budgets should be prepared when developing the annual master operating budget?

11 / 40

Which one of the following is not an advantage of activity-based budgeting?

12 / 40

When comparing performance report information for top management with that for lower-level management,

13 / 40

The budgeting process should be one that motivates managers and employees to work toward organizational goals.

Which one of the following is least likely to motivate managers?

14 / 40

In an organization that plans by using comprehensive budgeting, the master budget is:

15 / 40

A company uses a type of budgeting that focuses on the cost of the processes required to produce and sell products and services.
This type of budgeting is known as:

16 / 40

The use of the master budget throughout the year as a constant comparison with actual results signifies that the master budget is also a:

17 / 40

An improperly executed budget process might have the effect(s) of:

18 / 40

Which budget is prepared after the creation of the cash budget?

19 / 40

Medico has found that its annual budgets are quickly outdated once actual data is recorded.

Sometimes actual preparations have already begun for the period being budgeted by the time the annual budget is finished, which leaves no time to react to changing factors.

Medico wants the budget to be as up-to-date as possible, and management is willing to revise budgets as needed. Which budgeting solution would be most appropriate for Medico?

20 / 40

Zero-based budgeting forces managers to:

21 / 40

A systemized approach known as zero-based budgeting (ZBB)

22 / 40

Which of the following is normally included in the financial budget of a firm?

23 / 40

After the goals of the company have been established and communicated, the next step in the planning process is development of the:

24 / 40

A budget manual, which enhances the operation of a budget system, is most likely to include:

25 / 40

Which one of the following is not a characteristic of a successful budget process?

26 / 40

The major appeal of zero-based budgeting is that it:

27 / 40

Each organization plans and budgets its operations for slightly different reasons.

Which one of the following is not a significant reason for planning?

28 / 40

All of the following are advantages of the budgeting process except that the budget:

29 / 40

The foundation of a profit plan is the:

30 / 40

The financial budget process includes:

31 / 40

While an operating budget is a key element in planning and control, it is not likely to:

32 / 40

One of the primary advantages of budgeting is that it:

33 / 40

In developing a comprehensive budget for a manufacturing company, which one of
the following items should be done first?

34 / 40

Which one of the following best describes the role of top management in the budgeting process? Top management:

35 / 40

The preparation of a comprehensive master budget culminates with the preparation of the:

36 / 40

When developing a budget, an external factor to consider in the planning process is:

37 / 40

When compared with ideal standards, practical standards:

38 / 40

The budget that is usually the most difficult to forecast is the:

39 / 40

All of the following are advantages of the use of budgets in a management control system except that budgets:

40 / 40

Which one of the following schedules would be the last item to be prepared in the normal budget preparation process?


Contact Us