1. Which of the following is true of master budgets? A. They include only financial aspects of a plan and exclude nonfinancial aspects. B. Includes both operating and financial aspects of management's plans. C. They include only operating budgets. D. They include long-run strategic plan. 2. Which of the following is not a purpose of budgeting? A. Discourage creativethinking as budget is rigid Communication and coordinating activities among multiple departments C. Performance evaluation based on actual-budgeted variances D. Motivate improved performance as employees work towards goals B. 3. Which of the following is not a component of operating budgets? A. Production budget B. Sales budget C. Capital expenditures budget D. Operating expenses budget forecast, and concludes with 4. The operating budget process generally starts with A. production; budgeted cash flow statement B. cost; budgeted income statement C. cash; budgeted balance sheet D. sales; budgeted income statement