1. CHOOSE THE BEST ANSWER

Which of the following represents the normal sequence in which the below budgets are prepared?

a. Sales Budget, Budgeted Balance Sheet, Budgeted Income Statement

b. Budgeted Balance Sheet, Sales Budget, Budgeted Income Statement

c. Sales Budget, Budgeted Income Statement, Budgeted Balance Sheet

2. Cosme Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in the budgeting:

	Fixed Element/Month	Variable Element/Student	Variable Element/Course
Revenue	$0	$336	$0
Faculty Wages	$0	$0	$2,000
Course Supplies	$0	$52	$30
Administrative Expenses	$47,700	$13	$29

In April, the school budgeted for 1,870 students and 174 courses. The school