Q: Which of the following statements is correct regarding the drivers of operating and financial budgets?

A.The cash budget will drive the production and selling and administrative expense budgets.

B.The cost of goods sold budget will drive the units of production budget.

C.The production budget will drive the selling and administrative expense budget.

D.The sales budget will drive the cost of goods sold budget.

Q2: Which of the following statements is correct regarding the components of the master budget?

A. The manufacturing overhead budget is used to create the production budget.

B.The cost of goods sold budget is used to create the selling and administrative expense budget

C.Operating budgets are used to create cash budgets.

D.The cash budget is used to create the capital budget.