Start learning →

US CMA Part 1 Budgeting — practice questions

Explore 19 free Budgeting questions in US CMA Part 1 Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Budgeting with Quill →

Budgeting questions and exercises with answers

Showing questions 1–19 of 19.

Static or flexible budget?Read the answer and worked solution →Order the master budget buildRead the answer and worked solution →Complete the production budgetRead the answer and worked solution →Match each budget to its jobRead the answer and worked solution →Tap every cost that fitsRead the answer and worked solution →Spot the false budgeting claimRead the answer and worked solution →Pop the factory overhead costsRead the answer and worked solution →What is a budget?Read the answer and worked solution →What is the defining limitation of a static budget?Read the answer and worked solution →Actual costs of $130,000 exceed a static budget of $120,000. Why might that still be a positive outcome?Read the answer and worked solution →What does a flexible budget provide that a static budget does not?Read the answer and worked solution →What is a master budget?Read the answer and worked solution →The cash budget and the capital expenditures budget are included on which statement?Read the answer and worked solution →Which budget must be completed before the production budget can be prepared?Read the answer and worked solution →A company budgets 2,600 bicycle helmets at $50 each and 4,800 ski helmets at $130 each. What is total budgeted sales revenue?Read the answer and worked solution →A company will produce 1,000 statues, each needing 5 hours of direct labor at $10 per hour. What is total budgeted direct labor cost?Read the answer and worked solution →Budgeted gross profit is $490,460, selling and administrative expenses are $228,100 and the tax rate is 25%. What are budgeted income taxes?Read the answer and worked solution →What does the cash budget estimate?Read the answer and worked solution →What does a capital expenditure budget list?Read the answer and worked solution →

Worked practice questions

Static or flexible budget?

Read exercise and reference answers
Left
Static
Items
  1. Item
    One fixed volume
    Answer
    Static
  2. Item
    Many unit levels
    Answer
    Flexible
  3. Item
    No units stated
    Answer
    Static
  4. Item
    A menu of budgets
    Answer
    Flexible
  5. Item
    Fits actual units
    Answer
    Flexible
  6. Item
    Vague assumptions
    Answer
    Static
  7. Item
    Same at any volume
    Answer
    Static
  8. Item
    Columns per volume
    Answer
    Flexible
Right
Flexible
Instructions
Swipe left for the static budget, right for the flexible one.
_Source: Jonick, Principles of Managerial Accounting, section 7.3 Flexible Budget_

Open this exercise →

Order the master budget build

Read exercise and reference answers
Steps
  1. Sales budget
  2. Production budget
  3. Materials purchase
  4. Direct labor cost
  5. Cost of goods sold
  6. Budgeted income
Instructions
Tap the budgets in the order they are prepared.
_Source: Jonick, Principles of Managerial Accounting, section 7.5 Operating Budget_

Open this exercise →

Complete the production budget

Read exercise and reference answers
Missing parts
  1. Answer
    600
    Choices
    1. 300
    2. 600
    3. 900
  2. Answer
    3,600
    Choices
    1. 2,400
    2. 5,600
    3. 3,600
  3. Answer
    1,000
    Choices
    1. 1,000
    2. 400
    3. 6,200
Complete the statement
Units to be sold 3,000 plus desired ending inventory {0} gives {1} units needed. Deduct beginning inventory 2,600 and {2} units must be produced.
Instructions
Tap the number that belongs in each gap.
_Source: Jonick, Principles of Managerial Accounting, section 7.6 Sales Budget_

Open this exercise →

How to practise

  1. Choose a Budgeting question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Management Accounting topics

Activity-Based CostingResponsibility AccountingManagerial Accounting ConceptsJob Order CostingProcess Costing