Budgetary Control And Responsibility Accounting
6 Questions
| Total Attempts: 31
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Questions and Answers
- 1.Budgetary control involves all of the following activities except:
- A.
Develop budget
- B.
Edit budget
- C.
Take corrective action
- D.
Modify future plans
- 2.A static budget is a projection of budget data at one level of activity.
- A.
True
- B.
False
- 3.Which one of the following is a limitation of static budget reports?
- A.
It is appropriate for fixed costs
- B.
Appropriate for evaluating a manager's effectiveness in controlling costs
- C.
Not appropriate for variable costs
- D.
None of the above
- 4.Developing a flexible budget involves how many steps?
- A.
5
- B.
1
- C.
3
- D.
4
- 5.A [Blank] center is any individual who has control and is accountable for activties.
- 6.The three basic types of responsibility centers are:
- A.
Revenue center
- B.
Cost center
- C.
Profit center
- D.
Investment center
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