A 'Flexible Budget' is most useful because it: MCQ with Answer and Explanation

Question

Share Report Error

A 'Flexible Budget' is most useful because it:

A. Assumes all costs are fixed

B. Can be changed by managers without approval

C. Only targets cash flows

D. Shows expected costs at various levels of actual production

Answer: Option D

Solution (By JKSSB Mock Tests)

Unlike a static budget, a flexible budget adjusts based on the actual activity level, providing a realistic benchmark for variance analysis.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

If a cheque received from a customer is endorsed to a creditor on the same day, it is recorded in:

A. Pass Book only

B. Cash Book

C. Journal Proper

D. Sales Book

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Since no cash or bank balance of the business changes, endorsement of a cheque is recorded in the Journal Proper.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The Income Tax Act, 1961 classifies income under how many heads?

A. Seven

B. Five

C. Six

D. Four

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Heads of income: Salary, House property, Business/profession, Capital gains, Other sources. Total five heads.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'Interim Dividend' is declared by:

A. Board of Directors

B. Auditors

C. Shareholders

D. Government

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Interim dividend can be declared by the Board of Directors between annual general meetings.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs