F2 (MA/FMA) – Chapter 11 – PART D – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-D of the Syllabus “Budgeting”.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have learned and finished the entire F2 (MA/FMA) Management Accounting Chapter 11 – Making budgets work and Syllabus Area Part-D “Budgeting”.

All the questions are compulsory, so do not skip any.


Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Making budgets work
Chapter Number: 11 of the Practice and Exam Kit
Syllabus Area: D – Budgeting
Questions Type: CBE MCQs
Exam Section Type: Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part D of the Syllabus; Budgeting of ACCA F2 (MA/FMA) Management Accounting Module.


These multiple-choice questions (MCQs) are not timed, allowing students to solve them without feeling any pressure and to pay proper attention to the questions.


Students can see their result at the end of the Quiz. They can also be able to see the number of correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F2 - Chapter 11 - Part A - MCQs

Course: ACCA - FIA
F2 (MA/FMA) Management Accounting
Chapter: 11 - Making budgets work
Syllabus Area: D - Budgeting
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit


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1 / 5

Which of the following best describes a controllable cost?

2 / 5

Which of the following best describes a top-down budget?

3 / 5

Which of the following statements about budgeting and motivation are true?

  1. A target is more motivating than no target at all
  2. The problem with a target is setting an appropriate degree of difficulty
  3. Employees who are challenged tend to withdraw their commitment

4 / 5

Participation by staff in the budgeting process is often seen as an aid to the creation of a realistic budget and to the motivation of There are, however, limitations to the effectiveness of such participation.

Which of the following illustrates one of these limitations?

5 / 5

In which of the following circumstances is the use of a participative budgeting process appropriate?

  1. In decentralised organisations
  2. When acceptance of the budget as fair and equitable is essential
  3. When an organisation's different units act autonomously

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