Question 2

a.) Budgets help managers control costs and monitor profits. (True/False)

b.) Budgets help managers forecast future profitability and financial position. (True/False)

c.) Pro forma financial statements are projected income statements and balance sheets that reflect future profitability and financial position. (True/False)

d.) Continuous budgets tend to be zero-based. (True/False)

e.)Static budgets tend to be zero-based. (True/False)

f.) Flexible budgets tend to be zero-based. (True/False)

g.) Production budgets are prepared based on sales forecasts and inventory levels. (True/False)