CA Managerial Accounting & Budgeting

Question 1

What is the primary focus of managerial accounting?

Accepted Answer

Support internal decision-making

Answer

Serve external investors

Answer

Prepare tax filings

Answer

File regulatory reports

Question 2

Which report helps managers plan for future operations?

Accepted Answer

Budget report

Answer

Balance sheet

Answer

Cash flow statement

Answer

Audit log

Question 3

What is variance analysis used for?

Accepted Answer

Analyze performance gaps

Answer

Track employee hours

Answer

Reconcile taxes

Answer

Summarize equity

Question 4

What are fixed costs?

Accepted Answer

Unpaid liabilities

Answer

Costs that vary with production

Answer

One-time expenses

Answer

Unchanging costs

Question 5

Which budgeting method starts from zero each period?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Flexible budgeting

Answer

Cash budgeting

Question 6

What is break-even analysis used for?

Accepted Answer

Track depreciation

Answer

Maximize profits

Answer

Forecast taxes

Answer

Calculate break-even point

Question 7

What type of cost changes with production level?

Accepted Answer

Variable costs

Answer

Fixed costs

Answer

Sunk costs

Answer

Depreciation

Question 8

What is the role of a flexible budget?

Accepted Answer

Adapts to activity changes

Answer

Hides costs

Answer

Matches past data

Answer

Ignores variance

Question 9

What is cost-volume-profit analysis used for?

Accepted Answer

Assess profitability drivers

Answer

Calculate taxes

Answer

Monitor audit trails

Answer

Create financial statements