Cost Budget Quiz ChallengeOnline version Test your knowledge on cost budgeting concepts and practices! by Ankita Bindal 1 What is a cost budget? a An investment strategy b A revenue forecast c A profit margin analysis d A financial plan for expected costs over a specific period. 2 Which of the following is a key component of a cost budget? a Projected sales b Customer demographics c Estimated expenses d Market analysis 3 What does a cost budget help organizations manage? a Customer satisfaction b Employee performance c Financial resources d Product quality 4 What is the primary purpose of a cost budget? a To control spending b To increase sales c To expand operations d To hire staff 5 Which method is commonly used to create a cost budget? a Flexible budgeting b Rolling budgeting c Zero-based budgeting d Incremental budgeting 6 What is variance analysis in cost budgeting? a Evaluating employee performance b Forecasting future sales c Comparing budgeted costs to actual costs d Setting new budget limits 7 What is a fixed cost in a budget? a Variable costs that fluctuate b Costs that do not change with service volume c Costs that vary with service level d One-time expenses 8 Why is it important to review a cost budget regularly? a To increase profit margins b To hire new employees c To adjust for changes in expenses d To expand product lines 9 What role does forecasting play in cost budgeting? a It analyzes market trends b It sets sales targets c It predicts future costs based on historical data. d It evaluates employee performance 10 What is the difference between direct and indirect costs? a Direct costs are fixed; indirect costs are variable. b Direct costs can be traced to a specific service project; indirect costs cannot. c Indirect costs are always higher than direct costs. d Direct costs are always labor-related.
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