Consider the following statements:

I. Budgets are used to plan and control operations.

II$.$ An disadvantage of self$-$imposed budgeting is that it may allow lower$-$level managers

to create budgetary slack.

$($a$.)$ I is true; II is true

b$.$ I is true; II is false

c$.$ I is false; II is true

d$.$ I is false; II is false

Consider the following statements:

I. The number of units to be produced in a period can be determined by adding the expected sales

to the desired ending inventory and then deducting the beginning inventory.

II$.$ When preparing a direct materials budget, the units of raw materials needed to meet production

should be added to the desired ending inventory and the beginning inventory for raw materials

should be subtracted to determine the amount of raw materials to be purchased.

a$.$ I is true; II is true

b$.$ I is true; II is false

c$.$ I is false; II is true

d$.$ I is false; II is false

Which of the following budgets are prepared before the Sales budget?

Production budget

a$.$

Yes

b$.$

Yes

No

No

Purchases budget

Yes

No

Yes

No

When preparing a production budget, the required production equals:

a$.$ Budgeted Sales $+$ Beginning Inventory $-$ Desired Ending Inventory

b$.$ Budgeted Sales $+$ Beginning Inventory $+$ Desired Ending Inventory

c$.$ Budgeted Sales $-$ Beginning Inventory $+$ Desired Ending Inventory

d$.$ Budgeted Sales $-$ Beginning Inventory $-$ Desired Ending Inventory

Seventy $[70\%]$ percent of Parlee Company's sales are collected in the month of sale,

$20\%$ in the month following sale, and $10\%$ in the second month following sale.

The following are budgeted sales data for the company:

Total budgeted cash collections in April would be:

a$.$ $$600,000$

$($c$)$ $$480,000$

b$.$ $$540,000$

d$.$ $$420,000$

e$.$ None of the above. The answer is