compare Company A and Company B. Using the risk measure in each question, answer the following: COMPANY A IS RISKIER THAN COMPANY B. Each question is INDEPENDENT. 1. Percent cash sales: Company A = 25% and Company B = 15% 2. Coefficient of variation: Company A = 25% and Company B = 15% Required level of ending finished goods inventory (production budget): Company A = 40% of next month's sales, and Company B = 25% of next month's sales 3. 4. 5. 6. 7. The natural tension within the budgeting process involves planning and budget accuracy Total scrap = 15,000 finished units, when the good production required = 85,000 finished units and the budgeted scrap rate = 15%. The goal of participative budgeting involves increasing supervisor reliance on subordinates with specialized knowledge Budget ratcheting recognizes that for planning purposes, budgets generally increase regardless of changes in the business environment T F T T T T T T F F F LL F F LL F