Practice Budget - 21.1.1 | 21. Budgeting and Budgetary Control | Management 1 (Organizational Behaviour/Finance & Accounting)
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Budget

21.1.1 - Budget

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Practice Questions

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Question 1 Easy

What is a budget?

💡 Hint: Think about what a roadmap does.

Question 2 Easy

What is the main purpose of budgeting?

💡 Hint: It's like planning for a trip.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is a primary function of budgeting?

To track only expenditures
To plan for income and expenditures
To allocate departmental roles

💡 Hint: Think about what budgeting helps organizations do.

Question 2

True or False: A flexible budget can adjust with activity levels.

True
False

💡 Hint: Consider how budgets would react to changes.

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Challenge Problems

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Challenge 1 Hard

A tech startup has a projected revenue of $300,000 for the year and estimates its expenditure at $250,000. Discuss how effective budgeting will impact the startup's operations.

💡 Hint: Consider both revenue management and expenditure control.

Challenge 2 Hard

In terms of budgeting, how could a company handle a sudden increase in operational costs while adhering to its fixed budget?

💡 Hint: Think about cost-cutting measures or additional income strategies.

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