cash flow analysis needs to be performed in order to:

	A.	Compute sales for the period
	B.	Prepare the production budget
	C.	Make sure there is sufficient cash to cover expenditures in a given period
	D.	Prepare a bank reconciliation

The Santa Anita Racetrack uses numerous standards to control its operations. However, a standard will not be used as a control if:

	A.	The cost to develop and monitor the standard is more than the benefit derived
	B.	Employees become resentful of the standard of control
	C.	The timeliness and accuracy of the control cannot be relied upon
	D.	All of the above are true

using a higher quality leather in making car seats will result in a:

	A.	Favorable variance
	B.	Unfavorable variance
	C.	Activity variance
	D.	Level variance

In preparing the master budget for a profit-making company, which of the following schedules is prepared first?

	A.	Production schedule.
	B.	Direct Labor schedule.
	C.	Sales schedule.
	D.	Budgeted income statement.