Correct Answer:
D. A comprehensive budget summarizing all functional budgets, including budgeted financial statements
The master budget combines operating and financial budgets.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
A master budget is:
Related MCQs
Actual labor rate is Rs. 22 per hour, standard rate is Rs. 20 and actual hours are 100. The labor rate variance is:
A.
Rs. 200 favorable
B.
Rs. 2,000 adverse
C.
Rs. 200 adverse
D.
Rs. 220 favorable
Correct answer is:
C. Rs. 200 adverse
Do you agree with this answer?
A just-in-time (JIT) system aims to:
A.
Keep large safety stocks
B.
Reduce inventory by producing or buying only when needed
C.
Produce in large batches for future demand
D.
Increase the number of suppliers
Correct answer is:
B. Reduce inventory by producing or buying only when needed
Do you agree with this answer?
Under IFRS 15, revenue is recognized when:
A.
A performance obligation is satisfied by transferring control of goods or services to the customer
B.
A contract is signed
C.
Cash is received in all cases
D.
The invoice is printed
Correct answer is:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
Do you agree with this answer?
In zero-based budgeting, managers must:
A.
Add a fixed percentage to last year's budget
B.
Justify every budgeted item from zero in each budget period
C.
Use only last year's figures
D.
Avoid preparing a budget
Correct answer is:
B. Justify every budgeted item from zero in each budget period
Do you agree with this answer?
The principal budget factor is:
A.
The factor that limits the activities of an organization
B.
The largest expense
C.
The total of sales
D.
The profit target
Correct answer is:
A. The factor that limits the activities of an organization
Do you agree with this answer?
Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
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