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Pham Lone GENT N: T0O58S1721 NAME: STUDENT NO: TOO588121 TRUE/FALSE. WriteT the statem ent is trae and 'F it the statem ont is fabe 1. One of the di sinct advantages of a budget is that it can help to uncover potenia T or F bottlenecks before they occur. 2. A self imposed budget can be a very effective device to control and evaluate a managet's 3. Sales forecasts are drawn up after the cash bodget has been completed since only then are or Tor the funds available for marketing known 4. A production budget is to a m anufacturing finm as a merchandise parchases budget is toa ToF merchandising firm. 3. The direct materials to be purchased for a period can be obtained by subtracting the desired ending inventory of direct materi als from the total direct materials needed for the period 6. In companies that have no lay-off" policies, the total direct labour cost for a budgetT or F period is computed by multiplying the total ? labour hours needed to make the budgeted output of completed units by the direct labour wage rate. Pham, Long G. 7. In the m erchand se purchases budget, the required purchases Gn units) for a period cam be Tor determined by subtracting the beginning m erchandise inventory Gn units) from the budgeted sales (in units) 8. The beginning cash balance is not included on the cash budget since the casb badget deals T or F exclusively with cash flows rather than with balance sheet am ounts TorF 9. When using the self-imposed budget approach, it is generally best for top managem ent to accept all budget estim ates without question in order to minimize adverse behavioural responses from employees. 10. Budgets describe in financial terms the plans to achieve an entity's strategic objectives.Tor F TorF 11. A multi-tiered business's standing budget committee prepares all the detailed budgets for all components of the organization

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