For Questions 1-3, compare Company A and Company B. Using the risk measure in each question, answer the following: COMPANY A IS RISKIER THAN COMPANY B. Each question is INDEPENDENT. Percent cash sales: Company A = 25% and Company B = 15% 1. TF 2. Coefficient of variation: Company A = 25% and Company B = 15% T F 3. Required level of ending finished goods inventory (production budget): Company A = 40% of next month's sales, and Company B = 25% of next month's sales T F 4. The natural tension within the budgeting process involves planning and budget accuracy 5. Total scrap = 15,000 finished units, when the good production required = 85,000 finished units and the budgeted scrap rate = 15%. T 6. The goal of participative budgeting involves increasing supervisor reliance on subordinates with specialized knowledge T 7. Budget ratcheting recognizes that for planning purposes, budgets generally increase regardless of changes in the business environment T LL LL F F F F