Assignment 1(Chapter 12) Principles of Management

Preparation of budget is completed within stipulated time. True False

Objectives of Budgetary Control. Fixation of the income & expenditure department wise Defining goals or objectives of the organisation for a stipulated time Forecasting the financial position of the company All of the above

Advantages of Budgetary Control Tool for planning activities Co ordination of efforts Control of expenditure All of the above

Budgetary Control facilitates planning, controlling and ______ Co-ordination Accuracy Control of expenditure Better utilisation of resources

Disadvantages of Budgetary Control Personal Bias Consistency Time consuming process All of the above

Budget forecasts the cash, receipt and expenses. True False

Budgetary Control is the best tool of management for Planning and Controlling True False

Zerobase budget is prepared without considering the previous years figures. True False

Characteristics of Budgetary Control Future is planned on basis of past experience Recommends and implements corrective actions whenever necessary

Gives extent of expenditure through which cost control is achieved All of the above

Budget improves the efficiency f the employees and minimises the expense at every level of the organisation. True False One of the steps in the preparation of Budget. Time & Material Budget Quick Reporting Sound Forecasting None of the above

Sound Forecasting is necessary for Fixed Budget Reliable Budget Flexible Budget All of the above

departmental budgets. Budget Departmental General Body Controlling

Committee has full responsibility to prepare all the

None of the above

Production Budget is prepare with help of following budget Purchase Inventory Sales All of the above None of the above

Purchase Budget is prepare with help of following budget Sales Production Inventory Utilization None of the above

Budget helps in achieving process. Sales and Inventory Production and utilization Objective and Control None of the above

and

of the

the top management executives. Sound Forecasting

Alone supplies the adequate & desired information to

Fixation of Responsibility Centers Formation of Budget Committee Developed Accounting System

Successful budget occurs only when there is good relationship between following two Management & Subordinates CEO & Management Management & Employee Management & Various Departmental Heads

Statistical Control Reports are prepared in ______ terms. Quantitative Qualitative None of the above

Personal Observation is the oldest type of control and is disliked by the honest and efficient employee. True False

Fixed cost changes according to the changes in the volume of production. True False

______technique concentrates on cost rather than duration. CPM PERT Gantt Milestone chart None o f the above

______ emphasises only on production schedule but not on product quality. Gantt Milestone Chart CPM PERT Management Audit

______is a must for all joint stock companies under the preview of statutory control. Production Control Zerobase Budgeting External Audit Control None of the above

PERT gives importance on cost. CPM gives importance on price. True False

Break-even analysis is otherwise called as______. Cost Volume Profit Analysis

Sale Profit Analysis Sale Analysis None of the above

Steps involved in standard costing are.... Measurement of actual performance Finding the causes of variations Taking measures to avoid variations in future All of the above

PERT and CPM are very important control technique for project like creation of picnic spot. True False