Budgeting

Question 1

What type of planning is long term, and looks at the organisation as a whole?

Answer 1

Strategic planning

Question 2

What type of planning is medium term, and looks at department/divisional level?

Answer 2

Tactical planning

Question 3

What type of planning is short term, and is very detailed and mainly concerned with control?

Answer 3

Operational planning

Question 4

What type of budget is set at current achievable levels?

Answer 4

An expectations budget

Question 5

What type of budget is set at a level which exceeds the level currently achieved?

Answer 5

An aspirations budget

Question 6

What type of budget is set without the ultimate budget holder having the opportunity to participate in the budgeting process?

Answer 6

An imposed/top-down budget

Question 7

Which type of budget allows all budget holders to participate in setting their own budgets?

Answer 7

Participative budget

Question 8

Which type of budget starts with the prior years figures and adds or subtracts an incremental amount to cover inflation and other changes?

Answer 8

Incremental budgets

Question 9

Which type of budget requires each cost element to be specifically justified, as though the activities to which the budget relates were being undertaken for the first time?

Answer 9

Zero-based budgeting

Question 10

Which type of budget is kept continually up to date by adding another accounting period when the earliest accounting period has expired?

Answer 10

Rolling budgets

Question 11

Which type of budget is based on activity framework and utilises cost driver data in the budget setting?

Answer 11

Activity based budgeting