Budgetary Control And Responsibility Accounting

1. A static budget is a projection of budget data at one level of activity.

True

False

2. Budgetary control involves all of the following activities except:

Develop budget

Edit budget

Take corrective action

Modify future plans

3. Which one of the following is a limitation of static budget reports?

It is appropriate for fixed costs

Appropriate for evaluating a manager's effectiveness in controlling costs

Not appropriate for variable costs

None of the above

4. The three basic types of responsibility centers are:

Revenue center

Cost center

Profit center

Investment center

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5. Developing a flexible budget involves how many steps?

5

1

3

4

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