3) The direct labor budget is based upon the cash budget. (9.37pts) True OFalse 4) The benefits of budgeting include: (9.38pts formalized planning. providing a basis for performance evalusation opening lines of communication and coordination within an entity All of the above. 5) A frequently cited limitation of the budget process is that budgets: (9.37pts) encourage sub-optimal resource allocation. discourage effective day- to-day management tend to be overemphasized as control vehidles with harm to employee relations All of these 6) Which of the following budgets is not specifically dependent on the short-run production budget? 9.38pts) Direct materials budget. Direct labor budget Factory overhead budget Capital expenditures budget. 7) The materials price variance is equal to the difference between the standard price and actual(9.37pts) price, multiplied by the standard quantity used True OFalse 8) An unfavorable variance should be debited to a variance account, rather than being assigned to (9.38pts) work in process. OTrue False