QUESTION 1 A budget is best described as: A. An informal statement of company's future plans usually expressed in monetary terms. B. The minimum acceptable performance level. C. A master control device. D. A formal statement of a company's future plans usually expressed in monetary terms. QUESTION 2 Which of the following is a benefit derived from budgeting? A Budgeting avoids needing industry and economic factors in decision making, B. Budgeting avoids the need for incentives to improve employee performance. C. Budgeting provides a basis for evaluating performance. D. Budgeting focuses management's attention on past performance, QUESTION 3 Operating budgets include all the following budgets except the A. Cash budget. B. Production budget C. General and administrative expense budget. D. Sales budget QUESTION 4 The usual starting point for preparing a master budget is forecasting or estimating A Expenditures B. Income C. Production D. Sales