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Business English Exercises
 

Budgeting

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 72
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budgeting answer 1
Budgeting is a combination of mathematics and guesswork: some factors are precisely known, while others are less clear.

Correct answer: (b) factors

Meaning of business term factors
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budgeting answer 2
Every company should prepare a complete budget and constantly monitor its performance against that budget.

Correct answer: (d) monitor

Meaning of business term monitor
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budgeting answer 3
Any variation from a budget should be investigated and explained, and prompt action should be taken to correct any problems.

Correct answer: (d) prompt

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budgeting answer 4
When you have set a budget, you should stick to it as much as possible, but revise it when necessary.

Correct answer: (c) stick

Meaning of business term stick
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budgeting answer 5
Budgeting itself can help a company reduce costs, because every item in it must be justified beforehand.

Correct answer: (b) justified

Meaning of business term justified
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budgeting answer 6
The wrong way to prepare a budget is to simply include everything at last year's level plus annual inflation.

Correct answer: (c) inflation

Meaning of business term inflation
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budgeting answer 7
Focus first on the largest costs, since they should have the greatest potential for reduction.

Correct answer: (b) potential

Meaning of business term potential
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budgeting answer 8
Do not overestimate the projected sales for the budget period.

Correct answer: (d) projected

Meaning of business term projected
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budgeting answer 9
Creating a(n) cash flow forecast requires estimating the expected monthly expenditures and matching those against the likely monthly income.

Correct answer: (a) cash flow

Meaning of business term cash flow
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budgeting answer 10
Many companies maintain a rolling budget, so that they are continually budgeting for this time next year.

Correct answer: (c) rolling

Meaning of business term rolling
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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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