CBA Budget Planning & Development

Question 1

What is the main objective of budget planning in an organization?

Accepted Answer

To allocate resources effectively

Answer

To prepare annual reports

Answer

To limit spending authority

Answer

To monitor staff productivity

Question 2

Which of the following is typically the first step in the budget development cycle?

Accepted Answer

Identifying objectives and goals

Answer

Approving final allocations

Answer

Reviewing prior year performance

Answer

Conducting variance analysis

Question 3

Which type of budgeting requires justification for all expenses each period?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Flexible budgeting

Answer

Performance budgeting

Question 4

Why is variance analysis crucial in budget management?

Accepted Answer

To detect deviations and improve accuracy

Answer

To finalize procurement plans

Answer

To monitor audit processes

Answer

To identify budget surpluses

Question 5

What is a rolling budget?

Accepted Answer

A continuously updated financial plan

Answer

A budget fixed for a fiscal year

Answer

A budget with strict variance limits

Answer

A budget based on incremental changes

Question 6

Which tool is most effective for forecasting in budget planning?

Accepted Answer

Trend analysis

Answer

Balance sheet

Answer

Audit trail

Answer

Compliance checklist