2) The last component of the master budget is the budgeted balance sheet.

A) True

B) False

3)When deciding how much to produce, managers must consider how much they hope to sell, how much is in starting inventory, and how much they want to have in ending inventory. 

A) True

B) False

4)If the budgeted profit is less than the amount that management considers satisfactory, steps can be taken to increase sales and reduce costs.

A) True

B) False

5) Budgets facilitate control by providing a standard for evaluation.

A) True

B) False

6)When we refer to manufacturing or manufacturing, it consists of activities and processes that convert raw materials into finished products.

A) True

B) False