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Created on May 08, 2026 By

CA Sonal Saboo

CMA Inter

Inter Management Accounting PN-12 Quiz 6

This quiz is based on the CMA Management Accounting paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA MA concepts.

1 / 25

Category: Management Accounting PN-12

The budget which is dynamic is ___________.

a. Flexible budget

b. Sales budget

c. Cash budget

d. Purchase budget

2 / 25

Category: Management Accounting PN-12

The object of budgetary control is __________

a. Planning

b. Forecasting

c. Organizing

d. Directing

3 / 25

Category: Management Accounting PN-12

A budget should be:

a. Rigid

b. Flexible

c. Both (1) and (2)

d. None of the above

4 / 25

Category: Management Accounting PN-12

Production budget is based upon:

a. Sales budget

b. Factory capacity

c. Availability of raw material and labour

d. All of the above

5 / 25

Category: Management Accounting PN-12

Following budget may be compiled on departmental basis:

a. Production budget

b. Purchase budget

c. Materials budget

d. All of the above

6 / 25

Category: Management Accounting PN-12

Purchases budget is prepared using the information from:

a. Capital expenditure budget

b. Materials budget

c. Both (1) and (2)

d. None of the above

7 / 25

Category: Management Accounting PN-12

Following may be regarded as a summary budget

a. Production budget

b. Master budget

c. Cash budget

d. Sales budget

8 / 25

Category: Management Accounting PN-12

A budget is an instrument of management used as an aid in the _____________.

a. Planning

b. Programming

c. Control of business activity

d. All of the above

9 / 25

Category: Management Accounting PN-12

What is the name given to a budget that has been prepared by re-evaluating activities and comparing the incremental costs of those activities with their incremental benefits?

a. Incremental budget

b. Rolling budget

c. Zero based budget

d. Flexible budget

10 / 25

Category: Management Accounting PN-12

The scare factors is also known as:

a. Key factor

b. Abnormal factor

c. Linking factor

d. None of the above

11 / 25

Category: Management Accounting PN-12

R&D budget and Capital expenditure budget are examples of:

a. Short-term budget

b. Current budget

c. Long-term budget

d. None of the above

12 / 25

Category: Management Accounting PN-12

Plant utilization budget and Manufacturing overhead budgets are types of:

a. Production budget

b. Sales budget

c. Cost budget

d. None of the above

13 / 25

Category: Management Accounting PN-12

The process of budgeting helps in the control of:

a. Cost of production

b. Liquidity

c. Capital Expenditure

d. All of the above

14 / 25

Category: Management Accounting PN-12

The budget which is dynamic is ___________.

a. Flexible budget

b. Sales budget

c. Cash budget

d. Purchase budget

15 / 25

Category: Management Accounting PN-12

The object of budgetary control is __________

a. Planning

b. Forecasting

c. Organizing

d. Directing

16 / 25

Category: Management Accounting PN-12

A budget should be:

a. Rigid

b. Flexible

c. Both (1) and (2)

d. None of the above

17 / 25

Category: Management Accounting PN-12

Budget includes:

a. Income

b. Expenditure

c. Employment of capital

d. All of the above

18 / 25

Category: Management Accounting PN-12

Production budget is based upon:

a. Sales budget

b. Factory capacity

c. Availability of raw material and labour

d. All of the above

19 / 25

Category: Management Accounting PN-12

Following budget may be compiled on departmental basis:

a. Production budget

b. Purchase budget

c. Materials budget

d. All of the above

20 / 25

Category: Management Accounting PN-12

Purchases budget is prepared using the information from:

a. Capital expenditure budget

b. Materials budget

c. Both (1) and (2)

d. None of the above

21 / 25

Category: Management Accounting PN-12

Following may be regarded as a summary budget

a. Production budget

b. Master budget

c. Cash budget

d. Sales budget

22 / 25

Category: Management Accounting PN-12

A budget is an instrument of management used as an aid in the _____________.

a. Planning

b. Programming

c. Control of business activity

d. All of the above

23 / 25

Category: Management Accounting PN-12

What is the name given to a budget that has been prepared by re-evaluating activities and comparing the incremental costs of those activities with their incremental benefits?

a. Incremental budget

b. Rolling budget

c. Zero based budget

d. Flexible budget

24 / 25

Category: Management Accounting PN-12

Which of the following is correct about the total overhead variance?

a. Budgeted overhead and budgeted overhead applied are the same

b. Total actual overhead is composed of variable overhead, fixed overhead, and period costs.

c. Standard hours actually worked are used in computing the variance

d. Standard hours allowed for the work done is the measure used in computing the variance

25 / 25

Category: Management Accounting PN-12

The setting of standards is:

a. A managerial accounting decision

b. A management decision

c. A worker decision

d. Preferably set at the ideal level of performance

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The average score is 44%

Inter PN-12 Management Accounting Quiz 6

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