SECTONA Please indicate whether the following statements are true [T] or false[T] by placing the appropriate letter in the box provided: 1 The usual starting point in budgeting is to make a forecast of cash receipts and cash - disbursements. [] 2. Budgets are used for control as well as for planning of operations. [ ] 3. Control involves developing objectives and preparing the various budgets to achieve those objectives, [.] 4. The direct materials to be acquired for a period must include the raw materials needed for production as well as the ending inventory = ] 5. In companies that have "no lay-off" policies, the total direct labour cost for a budget period. is computed by taking the total direct labour hours needed to make the budgeted output of completed units and multiplying them by the direct labour wage rate. [ ] 6. Standard costs should generally not be based on the actual costs of prior periods.[ ] 7. The standard direct labour rate should NOT include fringe benefits. [] 8. From a standpoint of cost control, the most effective time to recognize material quantity variances is when the materials are placed into production. [] 9. In order to be successful, an organization has to make a choice of whether or not to make a budget and whether to follow the budget it has created [] 10. Management by exception means that a manager's attention is directed toward those parts of the organization where things are not proceeding according to plans. [ ]