1) What is a budget? a) It is a financial document that shows expected costs and revenues for a business. b) It is a financial document that does not show expected costs and revenues for a business. c) It is a financial document that shows expected inventory and sales for a business. d) It is a financial document that shows unexpected costs and revenues for a business. e) It is a plan of what the business thinks is going to receive (income) and pay out (expenses) f) It sets out the costs and revenues that areexpected to be incurred or earned by future periods 2) What is budgeting variance? a) It is the difference between the actual and the expected (budgeted) cost b) It is not the difference between the actual and the expected (budgeted) cost c) The relationship between the actual and the expected (budgeted) cost 3) When an adverse variance happens? a) When the actual cost is lower than the expected (budgeted) cost b) When the actual cost is higher than the expected (budgeted) cost c) When the actual sales is lower than the expected (budgeted) sales d) When the actual sales is lower than the expected (budgeted) sales 4) What are the reasons for budgeting? a) Authorisation Authorisation b) Democracy c) Forecasting d) Planning e) Communication andco-ordination f) Motivation & Evaluation
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Budgeting - Elements of Costing- AAT 2
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Sgarcia
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