MCQ Test 1 on Budgeting and Accounting

MCQ The difference between the budgeted amounts and the actual results is classified as

1. standard deviation

2. variances

3. mean average

4. weighted average

MCQ The manager who is responsible for only the cost of the company is classified as

1. cost center

2. revenue center

3. profit center

4. investment center

MCQ The manager who is responsible for both the cost and revenues is called

1. cost center

2. revenue center

3. profit center

4. investment center

MCQ the larger number of manager subordinates and the higher leveled manager are classified
as

1. activity subordinates

2. broader responsibility center

3. broader subordinates
 4. activity ordinates

MCQ The assignment of task to managers who are accountable for their actions in controlling
and budgeting of resources is classified as

1. coordinating the company effort

2. action plan

3. action accountability

4. project accountability

MCQ The manager who is responsible for investments of the company, its costs and revenues is
classified as

1. profit center

2. investment center

3. cost center

4. revenue center

MCQ The use of variables to signal whether the strategies are effective or ineffective is
classified as

1. evaluating strategy

2. performing strategy

3. warned strategy

4. weighted strategy

MCQ The segment of subunit of company whose manager is responsible for specific set of
instructions and activities performed is classified as

1. subunit center
 2. instruction center

3. responsibility center

4. activity segment

MCQ The example of the revenue center is

1. sales department

2. investing center

3. marketing department

4. segment department

MCQ The variance, if used to alert managers before time of the problem is considered as

1. varied warning

2. times warning

3. managers warning

4. early warning

MCQ The arrangement of line of authority within the company is classified as

1. company structure

2. organization structure

3. line of authority

4. line of responsibility

MCQ The variance is when used by managers to check whether the company has performed
well and properly implemented the strategies is considered as

1. strategic implementation
 2. proper implementation

3. performance evaluation

4. well evaluated

MCQ The manager who is responsible for only the revenues of the company is classified as

1. profit center

2. investment center

3. cost center

4. revenue center

MCQ The system which measures the budget, action and plan of each responsibility center is
classified as

1. budgeted accounting

2. action accounting

3. planned accounting

4. responsibility accounting

MCQ The kaizen budgeting's significant feature is

1. employee suggestion

2. customer suggestion

3. cost suggestion

4. price suggestion