Capital Budgeting MCQs

Written by True Tamplin, BSc, CEPF®

Reviewed by Editorial Team

Updated on March 15, 2023

1. The use of budgets to control a firm's activities is called:
2. What is the term referring to management being held responsible for those items and only those items that management can actually control?
3. A 12-month budget that rolls forward (one month is added to the end of the budget as each month comes to a close) is called a:
4. A budget that requires management to justify all expenditures, rather than just changes from the previous year, is referred to as a:
5. Usually, the first step in the production of the master budget is the:
6. Which of the following is true about the company's direct materials budget?
7. Which of the following is not a section of the cash budget?

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About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.