Tag: social science

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Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budgetary control system defines the objectives and policies of the _________.

  1. production department

  2. finance department

  3. marketing department

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The main objectives of budgetary control are given below:

1. Defining the objectives of the enterprise.

2. Providing plans for achieving the objectives so defined.

3. Coordinating the activities of various departments.

4. Operating various departments and cost centres economically and efficiently.

:5. Increasing the profitability by eliminating waste.

6. Centralizing the control system.

7. Correcting variances from sit standards.

8. Fixing the responsibility of various individuals in the enterprise.

 

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budgetary control system acts as a friend, philosopher and guide to the _________.

  1. management

  2. share holders

  3. creditors

  4. employees
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A budget is a detailed plain of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies. It acts as a business barometer as it is complete programmed of activities of the business for the period covered
Besides' budgetary control' refers to a system of management and accounting control by which all operations and output are forecast as far as ahead  as possible and the actual results, when known are compared with the budget estimates. Thus the term budgetary control  is designed to evaluate the performance in terms of goals budgeted.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Frequent revision of budgets will _________.

  1. Affect its reliability

  2. Increase the accuracy

  3. Both

  4. Subjective matter
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The first step in a revision process is to examine the current budget and compare the allocations with actual spending based on past results. Categories that repeatedly fall short and those that show repetitive surpluses should be re-evaluated and revised. For example, suppose a business works from an annual budget and has a recurrent surplus in funds allocated to raw materials. Suppose the same business repeatedly experiences a shortfall in shipping. During the budget revision process, the average surplus from raw materials could be re-allocated to shipping. However, areas within the business that experience a recurring deficient need to be analyzed to find out why a particular area of operations continually exceeds the budgeted allotment.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

An example of long period budgets is _________.

  1. R & D budget

  2. Master budget

  3. Sales budget

  4. Personnel budget
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Long term Budgets. The budgets are prepared to show the long term planning of the organisation. This budget is prepared normally for a period of 5 to 10 years. Example : Capital expenditure budget, research and development, long term finances etc.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budget relating to the key factor is prepared __________.

  1. After other budgets

  2. With other budgets

  3. Before other budgets

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Budget relating to key factor is prepared first and all other budgets follow it. The key factor can be external or internal. the internal key factor can be sales,  material, labour, plant capacity or management. The external key factor may be government policy, market condition.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budgetary control system helps the management to eliminate _________.

  1. Undercapitalization

  2. Overcapitalization

  3. Both

  4. Subjective matter
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Budgetary Control is a technique of managerial control in which actual results are compared with budgetary standards. Budgeting is a forward planning. It serves basically as a tool for management control. Budgeting ensures planned use of all resources and funds available for a business. 

Under-capitalization refers to any situation where a business cannot acquire the funds they need, whereas overcapitalization occurs when a company has issued more debt and equity than its assets are worth. These two conditions are eliminated by proper budgeting as budgetary control helps in optimum utilisation of resources and required funding is anticipated in advance.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Key factor is also known as ___________.

  1. Limiting factor

  2. Governing factor

  3. Principal factor

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A key factor is defined as the factor in the activities of an undertaking which, at a particular point of time or over a period, will limit the volume of output. Other variant terms are limiting factor, Principal Budget Factor & scarce factor. Limiting factors are governed by both internal & external factors. It may be actual or potential. If a factor of production is in short supply, then the best-paying product becomes that which yields the highest contribution per unit of limiting factor.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budget period depends upon ______________.

  1. The type of budget

  2. The nature of business

  3. The length of trade cycles

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Budgeting is usually done for short, mid-range, longer term time periods. A month, a quarter and a month are usually observed budget periods. However, budget period can vary with each entity. A family might do budgeting every month. In this case, budget period is of one month. Generally, a government has a budget period of 12 months. Determining the budget period is the first step in the budgeting process. Budget period can have intermediate control periods over which comparisons are made between budgeted and actual results.