1. The initial budget prepared in the master budget is the A) sales budget. B) production budget. C) budgeted balance sheet. D) budgeted income statement. 2. Which statement is true? A) B) C) D) A project with an internal rate of return that is zero or A project with a net present value that is zero is accep Potential salvage value is ignored as a noncash flow it The internal rate of return method cannot be calculate inflows exist. 3. An unfavorable materials quantity variance would occur if more materials are purchased than are used. B) C) D) actual pounds of materials used were less than the sta actual labor hours were greater than the standard labo actual pounds of materials used were greater than the 4. A company uses 30,000 pounds of materials for which the pound. The materials price variance was $3,000 favorable per pound? A) $10.00 B) $3.90 C) $3.70 D) $13.80