TRUE OR FALSE QUESTION:

Part of the budgeting process is summarizing the financial statement effects on the budged income statement and the budgeted balance sheet.

The production budget cannot be prepared until the direct materials and direct labor budgets are prepared.

The budget process rarely coincides with the accounting period.

Part of the cash budget is based on info taken from the capital expenditures budget.

The budgeted balance sheet is prepared primarily from data contained in the previously prepared components of the master budget.

A budget is a formal statement of future plans, usually expressed in monetary terms.

Standard costs can be used by management to assess the reasonableness of actual costs incurred.