The two main parts of a master budget are: The sales budget and the income statement. The income…

The two main parts of a master budget are:

1. The sales budget and the income statement.
2. The income statement and the cash budget.
3. The production budget and the selling and administrative budget.
4. The operating budget and the financial budget.
5. None of these.

Question 26: Conceptually, based budgeting means that the managers must:

1. Justify 100% of his or her budget.
2. Justify 80% of his or her budget.
3. Justify 50% of his or her budget.
4. Justify 20% of his or her budget.
5. Justify 10% of his or her budget.

Question 27: A type of budgeting that has been recommended to reduce behavioural conflicts is the:

1. Rolling budget
2. priority budget.
3. Optimistic or reach budget.
4. Flexible budget.
5. Participative budget

Question 28: Which of the following types of budgets provide the weakest form of cost control?

1. Priority incremental
2. Flexible
3. Master
4. Zero based
5. Incremental