5. The budgeting process begins with the preparation of the budget. a. Cash b. Direct Materials c. Production d. Sales 26. Which of the following is true of self-imposed (participative) budgets? Self-imposed budgets give managers at all levels of an organization an opportunity to provide input into the budgeting process Self-imposed budgets are prepared without consulting lower-level managers Managers who create self-imposed budgets do not have an opportunity to embed budgetary slack within their estimates a. b. c. The estimates used in self-imposed budgets rely primarily on the inputs and insights of top managers. d. 27. In a flexible budget, what will happen to fixed costs as the activity level increases? a. The fixed cost per unit will decrease b. The fixed cost per unit will remain unchanged c. The fixed cost per unit will increase d. Fixed costs are not included in a flexible budget 28. When using a flexible budget, a decrease in activity within the relevant range: a. Decreases variable cost per unit b. Increases variable cost per unit c. Decreases total costs d. Increases total cost 29. A budget that is based on the actual activity of a period is known as a: a. Continuous budget b. Flexible budget c. Static budget d. Master budget