For each of the following statements pertaining to budgeting, indicate whether the statement is True or False.

- I. II.	Management should always base the budget on prior year’s financials.
- I. II.	The primary purpose of the budget is to help managers achieve their long-term strategic goals.
- I. II.	Budgeting makes managers focus on the goals of their responsibility center, while ignoring the goals of the rest of the firm.
- I. II.	Budgeting is an important tool for performance evaluation.
- I. II.	Slack is a helpful feature of participative budgeting that makes it easier for managers to adhere to their budgets.

I.	True
II.	False