This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one is Needs? A) Food. B) Big house. C) Car. D) LV bag. Show Answer Correct Answer: A) Food. 2. Create a budget from scratch A) Incremental Budget. B) Zero-Based Budget. C) Top-Down Approach. D) Bottom-Up Approach. Show Answer Correct Answer: B) Zero-Based Budget. 3. Which is the normal procedure for the superintendent? A) Prepare a business plan for the committee. B) Adjust the committee. C) Prepare the budget and submit it to the green commmittee. D) Develop pre budget agreements. Show Answer Correct Answer: C) Prepare the budget and submit it to the green commmittee. 4. Which one of these is most likely to result in an adverse overheads variance? A) Customer respond to price cut. B) Management get a surprise pay increase. C) Capital spending fall short of budget. D) Actual gross profit margin is 5% less than budget. Show Answer Correct Answer: B) Management get a surprise pay increase. 5. Which of the following is NOT a type of farming budget? A) Enterprise. B) Whole farm. C) Partial. D) Liability. Show Answer Correct Answer: D) Liability. 6. If an expense can NOT be removed from your budget to save money, it is considered a ..... A) Income. B) Want. C) Need. D) Savings. Show Answer Correct Answer: C) Need. 7. Which of the following is an example of partial budgeting? A) Totaling acres. B) Crop enterprise budget. C) Helping the operator analyze important adjustments in the farm operation. D) Deciding what crop to plant on a small plot. Show Answer Correct Answer: D) Deciding what crop to plant on a small plot. 8. Favorable variances are those that A) Are positive. B) Lead to lower than expected profit. C) Lead to higher than expected profit. D) Are unexpected. Show Answer Correct Answer: C) Lead to higher than expected profit. 9. Costs that vary in the amount and type, depending on the choices you make A) Assets. B) Liabilities. C) Fixed expenses. D) Variable expenses. Show Answer Correct Answer: D) Variable expenses. 10. Which of the following is not an operating budget? A) Direct labor budget. B) Sales budget. C) Production budget. D) Cash budget. Show Answer Correct Answer: D) Cash budget. 11. Which option is a Need? A) Car. B) Hot Tub. C) Nike Sneakers. D) Ipod. Show Answer Correct Answer: A) Car. 12. Costs that do not change from month to month, you are obligated to pay them regardless of income variation A) Variable expenses. B) Fixed expenses. C) Disposable income. D) Wealth. Show Answer Correct Answer: B) Fixed expenses. 13. What could be the opportunity cost of going to college? A) The money you miss out on because you school instead of working a job. B) Anything you could buy with the money you paid for college. C) An activity you could have spent your time doing instead of studying. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. A common reason why many small businesses don't use budgets is that: A) Trading is too predictable. B) The law only requires them for large firms. C) SME's don't record variances. D) Budgeting can be time consuming. Show Answer Correct Answer: D) Budgeting can be time consuming. 15. The amount of money you have left over after you've paid your taxes plus all of your necessary living expenses A) Disposable income. B) Discretionary income. C) Trade off. D) Fixed expense. Show Answer Correct Answer: B) Discretionary income. 16. When budgeting, the first categories to consider are those that meet your ..... A) Wants. B) Needs. C) Discretionary funds. D) Important expenses. Show Answer Correct Answer: B) Needs. 17. The money that is left over once all expenses have been paid and is used on whatever you like is called: A) Discretionary Income. B) Fixed Expenses. C) Cost-Benefit Analysis. D) Net Pay. Show Answer Correct Answer: A) Discretionary Income. 18. Income earned, usually based on a percentage of sales is called ..... A) Commission. B) Net income. C) Net worth. D) Wage. Show Answer Correct Answer: A) Commission. 19. If your monthly totals for your budget are more than your actual monthly income you are considered ..... budget. A) Over. B) Under. C) On. D) Within. Show Answer Correct Answer: A) Over. 20. The price paid for the use of someone else's property A) Rent. B) Mortgage. C) Down payment. D) Closing costs. Show Answer Correct Answer: A) Rent. ← PreviousNext →Related QuizzesAccounting QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books