6 The soal of a Cash Budget is to a. Forecast the actual amount of cash expected to be collected b. Forecast the actual amount of cash expected to be spent c. Only A d. Both A &B Utilizing the Net Present Value method of evaluating a capital project must include: 5.07 a. Consideration of the time value of money b. The results of a complete Payback Method analysis to be valid c. Disregarding the future cash flows of the project d. All of the above 5.08 The Accounting Rate of Return method: a. Focuses on GAAP income b. Considers the time value money c Only 8 d. Both A &B 5.09 The Static Budget: a. Is prepared for only one level of sales volume b. Contains multiple scenarios c. Is considered more useful than Flexible Budgets d. Is never meant to be analyzed 5.10 Variances in materials and labor rates are caused by: a. b. c. d. Imprecise estimates Laziness of manufacturing workers Primarily accounting errors Material or Labor shortages