#1
Which budgeting strategy is most suitable for industries with rapidly changing conditions?
Zero-based budgeting
Incremental budgeting
Flexible budgeting
Activity-based budgeting
#2
Which budgeting technique involves preparing budgets based on various levels of activity and production?
Incremental budgeting
Flexible budgeting
Zero-based budgeting
Activity-based budgeting
#3
What is the primary limitation of zero-based budgeting?
Time-consuming and resource-intensive
Lack of focus on cost efficiency
Difficulty in justifying new projects
Limited flexibility in budget adjustments
#4
What is the primary advantage of a flexible budget?
Simplicity in implementation
Focus on historical performance
Adaptability to changes in activity levels
Quick response to market changes
#5
What is the primary limitation of incremental budgeting?
Lack of flexibility in adapting to changes
Focus on cost efficiency
Time-consuming and resource-intensive
Difficulty in justifying new projects
#6
Which budgeting approach involves allocating resources based on the previous period's budget?
Incremental budgeting
Zero-based budgeting
Activity-based budgeting
Flexible budgeting
#7
What is the primary focus of zero-based budgeting?
Incremental adjustments
Starting from scratch each budgeting cycle
Variable cost analysis
Historical performance review
#8
What does the term 'master budget' refer to in the context of budgeting?
A comprehensive budget that includes all individual budgets of an organization
A budget exclusively for the finance department
A budget created by the executive team only
A budget for the upcoming fiscal year
#9
What is the primary objective of the cash budget?
To track non-cash transactions
To manage credit transactions
To forecast and manage cash inflows and outflows
To analyze capital expenditures
#10
In budgeting, what does the term 'static budget' mean?
A budget with fixed expenses that do not change with production levels
A budget created by the statics department
A budget exclusively for fixed assets
A budget with no adjustments over time
#11
What is the primary focus of a capital budget?
Short-term financial goals
Variable cost analysis
Long-term investments and expenditures
Operating expenses
#12
In budgeting, what does the term 'rolling budget' refer to?
A continuously updated budget extending into the future
A fixed budget for a specific period
A one-time budget for a special project
A budget with no changes over time
#13
What is the primary advantage of activity-based budgeting (ABB)?
Simplicity in implementation
Focus on fixed costs
Enhanced cost accuracy through detailed activity analysis
Quick response to market changes
#14
Which budgeting approach is characterized by reevaluating and adjusting the budget regularly based on changes in circumstances?
Incremental budgeting
Zero-based budgeting
Flexible budgeting
Activity-based budgeting
#15
What is the purpose of a variance analysis in budgeting?
To identify differences between budgeted and actual performance
To create a new budget from scratch
To compare different budgeting approaches
To forecast future budgets
#16
Which budgeting approach involves justifying each expense and project as if it were brand new?
Incremental budgeting
Zero-based budgeting
Flexible budgeting
Activity-based budgeting
#17
Which budgeting strategy emphasizes aligning budgets with organizational goals and objectives?
Incremental budgeting
Zero-based budgeting
Activity-based budgeting
Strategic budgeting