1. There is no need for managers to have employees participate in developing the budget because the budget is a management tool.

True

False

2. An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as ________.

A.

appropriation

B.

variance analysis

C.

benchmarking

D.

budgetary slack

3. The cash budget and the budgeted financial statements are collectively known as the ________.

A.

master budget

B.

financial budget

C.

operating budget

D.

production budget