True/false 1. Personnel who will have performance evaluated according to the budget standards should not be consulted and involved in preparing the budget. 2. A budget can be an effectiv e means of communicating management's plans to the employees of a business. 3. Budgets are normally more effective when all levels of management are involved in the budgeting process. 4. One of the major benefits of formal budgeting is the positive effect it can have on employee attitudes if applied correctly Budgeting is an informal plan for future business activities. A budget is a formal statement of future plans, usually expressed in monetary terms. s. 6. 7. The process of evaluating performance can be improved by using budgets. 8. Budget preparation is best determined in a top-down managerial approach. 9. The sequence of the budgets within the master budget are dictated by GAAP 10. The number and types of budgets included in a master budget depend on the company's size and complexity. 11. The budget process rarely coincides with the accounting period. 12. Activity-based budgeting is a budget system based on expected activities and their levels for the budget period, which helps management plan for the resources required 13. Traditional budgeting is generally better than activity-based budgeting when attempting to reduce costs by eliminating non-value-added activities. 14. A cash budget shows the expected cash receipts and cash expenditures during the budget period 15. Standard costs can be used by management to assess the reasonableness of actual costs incurred