Chapter 6 A. You are given the following information related to ABC manufacturing company Month Budgeted Sales March $200,000 April 212,000 May 204,000 June 218,000 July 210,000 In addition, the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales. Required: Prepare a purchases budget for April through June. B 1. Explain the concept of responsibility accounting and its relation with budgeting. 2. Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior. 3. Discuss the concept of "budgetary slack