Budgetary Control And Responsibility Accounting

6 Questions | Total Attempts: 31

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Budgetary Control And Responsibility Accounting

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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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