CCA Corporate Budgeting & Forecasting

Question 1

What is the main purpose of a corporate budget?

Accepted Answer

Planning and controlling financial resources

Answer

Setting employee bonuses

Answer

Managing daily operations

Answer

Tracking product quality

Question 2

Which type of budget adjusts based on actual activity levels?

Accepted Answer

Flexible budget

Answer

Static budget

Answer

Rolling budget

Answer

Capital budget

Question 3

What is forecasting used for in corporate finance?

Accepted Answer

Predicting future financial performance

Answer

Confirming actual expenses

Answer

Recording past sales

Answer

Calculating fixed costs

Question 4

What is a rolling forecast?

Accepted Answer

Continuously updated projection

Answer

A yearly budget

Answer

A fixed 12-month forecast

Answer

Weekly spending report

Question 5

Which of the following improves forecast accuracy?

Accepted Answer

Combine internal and external data

Answer

Only use historical sales

Answer

Avoid market research

Answer

Rely solely on intuition

Question 6

What is zero-based budgeting?

Accepted Answer

Starting from zero and justifying each cost

Answer

Allocating based on last year’s budget

Answer

Budgeting with growth projections

Answer

Eliminating budgeting altogether