1. When the level of production has been computed, a direct material budget should be constructed. 2. To compute direct labor requirements, expected production volume for each period is multiplied by the number of direct labor hours required to produce a single unit. 3 The sales budget is the starting point in preparing the master budget, since estimated sales volume influences nearly all other items appearing throughout the master budget. 4. Most companies perform a variance analysis of their budgets once a year. 5. The financial performance of a responsibility center has no impact on the appraisal of a manager's performance. 6. A Zero-Based Budgeting approach doesn't determine the benefit of each program, product or service each year. 7. Different parts of the budget are combined into the budgeted income statement which summarizes the various component projections of revenue and expenses for the budget period. 8. The budgeted balance sheet highlights future resources and obligations. 9. Finance managers can use the Proforma Cash Flow statement to ensure that projected requirements for working capital are met and to analyze how cash flows through the organization. 10 Budget reports are used for planning, control, and filing taxes with the government. 11 The selling and administrative expense budget lists the operating expenses involved in selling the products but not in managing the business. 12. The budgeted income statement summarizes the various component projections of revenue and assets for the budgeting period 13. Management by Objectives (MBO) is a system that the manager and subordinates agree to short - term performance targets, discuss the progress made toward meeting these targets, and periodically evaluate the performance and provide the feedback. 14. A financial budget is a plan including a budgeted balance sheet, which shows the effects of planned operations and capital investments on assets. liabilities, and equities. 15. A budget should be prepared for each department 1. When the level of production has been computed, a direct material budget should be constructed. 2. To compute direct labor requirements, expected production volume for each period is multiplied by the number of direct labor hours required to produce a single unit. 3 The sales budget is the starting point in preparing the master budget, since estimated sales volume influences nearly all other items appearing throughout the master budget. 4. Most companies perform a variance analysis of their budgets once a year. 5. The financial performance of a responsibility center has no impact on the appraisal of a manager's performance. 6. A Zero-Based Budgeting approach doesn't determine the benefit of each program, product or service each year. 7. Different parts of the budget are combined into the budgeted income statement which summarizes the various component projections of revenue and expenses for the budget period. 8. The budgeted balance sheet highlights future resources and obligations. 9. Finance managers can use the Proforma Cash Flow statement to ensure that projected requirements for working capital are met and to analyze how cash flows through the organization. 10 Budget reports are used for planning, control, and filing taxes with the government. 11 The selling and administrative expense budget lists the operating expenses involved in selling the products but not in managing the business. 12. The budgeted income statement summarizes the various component projections of revenue and assets for the budgeting period 13. Management by Objectives (MBO) is a system that the manager and subordinates agree to short - term performance targets, discuss the progress made toward meeting these targets, and periodically evaluate the performance and provide the feedback. 14. A financial budget is a plan including a budgeted balance sheet, which shows the effects of planned operations and capital investments on assets. liabilities, and equities. 15. A budget should be prepared for each department