1.

The excess of budgeted (or actual) sales over the break-even volume of sales is:

a		operating leverage
b		direct materials budget
c		accounting theory
d		margin of safety

2.

The balance scorecard approach usually includes all the following categories of measures except:

a		direct material measures.
b		internal business process measures.
c		financial measures.
d		learning and growth measures.

3.

Which of the following is TRUE of the budgeting process?

		Financial budgets must be prepared before operating budgets can be prepared.
		Operating budgets must be prepared before the cash budget can be prepared.
		Budgets can be prepared in any as long as the employees buy into them.
		The cash budget has an effec on all operating budgtets.