1) Budgets are helpful because managers can plan the cash inflows and outflows in an organization. Answer: 2) A budget is a quantitative expression of a plan that helps managers coordinate and implement the plan. Answer: 3) Budgets communicate financial plans to employees at all levels in the company. Answer: 4) The master budget includes both the operating budgets and the financial budgets. Answer: 5) Budgets are used to accomplish all of the following tasks, except A) planning for the future. B) controlling operations. C) recording actual results. D) directing operations. 6) Which of the following is an advantage of the budgeting process? A) Coordinates the activities of the organization B) Assures that the lowest cost materials will be obtained C) Assures the company will achieve its objectives D) Guarantees that a profit will be achieved 7) Which of the following budgets is the cornerstone of the master budget? A) sales B) cash C) budgeted balance sheet D) operating expense 8) What is the starting point of the master budget process? A) sales budget B) cash budget C) budgeted income statement D) production budget 9) On the production budget, the number of units to be produced is computed as A) unit sales + desired end inventory + beginning inventory. B) unit sales + desired end inventory - beginning inventory. C) unit sales - desired end inventory - beginning inventory. D) unit sales - desired end inventory + beginning inventory