1. What is responsible for the approval of the master budget?

A The company's board of directors

B The company's cost accountant

C The budget committee

D The company's auditors

2. Which of the following statements is true concerning the capital acquisitions budget?

A It consists of a plan to acquire long-lived assets

B it is constructed directly from the values in the sales budget

C It is the same as the capital budgeting process

D It is dependent upon plant capacity

3. Which of the following statements is true of standard cost?

A. it is equal to the actual cost of one unit of product

B. It is often calculated after production for the period is complete

C. It is the amount management thinks that one unit of product should cost

D It allows companies to generate more favorable than unfavorable variances