OUR LADY OF THE PILLAR COLLEGE- SAN MANUEL INCORPORATED

COLLEGE DEPARTMENT

STRATEGIC COST MANAGEMENT

NAME:

Direction: Write the letter of your answer on the space provided before the number. ERASURES MEAN
WRONG.

I. MULTIPLE CHOICE

1. A detailed plan for the acquisition and use of financial and other resources over a specified period of
time.

A. Master Budget

B. Budget

C. Budgetary control

D. Strategy

2. It is the process of preparing one or more budget.

A. Strategy

B. Budget

C. Budgeting

D. Income Statement

3. Identifies required actions over 5- to -10 year period to attain a firms strategic goals and objectives.

A. Long range plan

B. Short term objectives

C. Long term objectives

D. Master Budget

4. Process for evaluating, selecting and financing long term projects and programs, prepared to bring the
organization's capabilities into lines with needs of its long range plan.

A. Master Budget

B. Long range plan

C. Short term objectives

D. Capital Budgeting

5. It identifies the Strength, Weakness, Opportunities and Threats including internal and external factors.

A. Strategy

B. Master Budget

C. Budgeting

D. Cash budget

6. It is the key factor in the determination of other budgets, including the direct materials budget, the
direct labor budget and the manufacturing overhead budget.

A. Sales budget

B. Master budget

C. Production budget

D. Manufacturing budget

7. It is a top- down budgeting process where in the top management prepares budgets for the entire
organization, including those for lower- level operations.

A. Participative budgeting

B. Budget Committee

C. Authoritative Budgeting

D. Master Budget

8. It is a budgeting approach that explicitly demands continuous improvement in operation processes

and incorporates the improvements in the budget.

A. Master budget

B. Kaizen budgeting

C. Zero- based budgeting

D. Activity- based budgeting

9. Budgeting process that encourages managers to be aware of activities or functions that have outlived
their usefulnessor have been a waste of resources.
A. Activity- based budgeting

B. Master budget

C. Zero based budgeting

D. Kaizen budgeting

10. It is a comprehensive budget strategy for a specific period. It consists of interrelated operating and
financial budgets. It also refers to the process of preparing profit planning or targeting.

A. Budgeting

B. Master Budget

C. Comprehensive Budget

D. Budget

II. ENUMERATION

11-15. Enumerate the 5 steps in developing a Master Budget.

III. ESSAY

11-20. What is the importance of Budgeting and how it is efficient in your life as a student?