At 50% level of production it was estimated as 1,50,000

Question 164. : When standard output is 10 units https://rapidloan.net/payday-loans-ny/ per hour and actual output is 14 units per hour, the efficiency level will be: (A) 60% (B) 120% (C) 140% (D) None of the above Answer: (C) 140%

Question 174

Question 165. : A short term budget, broken down into a quarterly or monthly period and reviewed and modified in the light of changing conditions is: (A) Current Budget (B) Flexible Budget (C) Rolling Budget (D) Zero Base Budget Answer: (B) Flexible Budget

: While preparing a flexible budget indirect wages was considered as semi-variable expenses. If it has a tendency to increase by 10% between 60% to 75% capacity and further will increase by another 5% when production crosses 75%, the amount of indirect wages at 90% level of production is: (A) ? 1,65,000 (B) ? 1,72,500 (C) ? 1,73,250 (D) None of the above Answer: (C) ? 1,73,250

There will be no WIP at the end of any month. Finished units equal to half the sales for the next month will be in stock at the end of each month. The required production in units for April will be: (A) 2,800 (B) 2,200 (C) 2,400 (D) 3,200 Answer: (B) 2,200

Question 168. :In budgeting there was a shift from financial classification to objective classification in respect of functions, activities etc. (A) Programme (B) Performance (C) Zero base (D) None of the above Answer: (B) Performance

Question 169. : Budget which remain unchanged regardless of the actual level of the activity is known as: (A) Fixed Budget (B) Functional budget (C) Flexible budget (D) Cash budget Answer: (A) Fixed Budget

Question 170. : is prepared for the estimation of plant capacity to meet the budgeted production during the budgeted period. (A) Plant utilization budget (B) Production budget (C) Manufacturing overhead budget (D) Labour budget Answer: (A) Plant utilization budget

Question 171. : A flexible budget is: (A) A budget that is designed to furnish budgeted costs at different activity levels (B) A budget that will be changed at the end of the month in order to reflect the actual costs of a department (C) A budget that comprises variable costs only (D) A budget that is designed for a specific planned output level Answer: (A) A budget that is designed to furnish budgeted costs at different activity levels

Question 166

Question 172. : ABC Ltd. has forecast its sales for the next three months as follows: May : 12,000 units June : 20,000 units July : 25,000 units As per the company policy, closing stock should be equal to 20% of the coming month’s sales forecast. How many units should be produced in June? (A) 20,000 Units (B) 11,000 Units (C) 21,000 Units (D) 25,000 Units Answer: (C) 21,000 Units

Question 173. : is a budget which, by recognizing different cost behaviour patterns, is designed to change in relation to the volume of output. (A) Production Budget (B) Performance Budget (C) Zero Base Budget (D) Flexible Budget Answer: (D) Flexible Budget

: is an operating and financial plan of a business enterprise. (A) Forecast (B) Budget (C) Estimate (D) Standard Answer: (B) Budget

Question 175. : is based on the premise that every rupee of expenditure requires justification. (A) Zero Base Budgeting (B) Programme Budgeting (C) Performance Budgeting (D) Appraisal Budgeting Answer: (A) Zero Base Budgeting

Question 176. : Under Balance Sheet Method of preparing cash budget, budget is prepared on the basis of:………… (A) Current year balance sheet (B) Previous year balance sheet (C) Forecasted balance sheet (D) Consolidated balance sheet Answer: (C) Forecasted balance sheet

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