Which of the following statement concerning budget preparation is correct? OOOOO Static budgets are prepared for multiple activity levels. Participative budgeting minimizes the risk that employees will create budgetary slack. If a participative approach is used to prepare budgets, only top management is involved in the budgeting process. The preparation of the production budget is the starting point in the budgeting process for manufacturers. A zero-based budgeting approach requires that every number in the budget be justified from "the ground up." Which of the following is correct regarding responsibility centers? Budget performance reports should only be used to evaluate the performance of cost centers. Responsibility centers are primarily used by companies with decentralized operations. If a manager is held responsible for generating revenue and controlling costs, the division is considered both a cost and a profit center. Product line, geographic, and customer base are all considered categories of responsibility centers. Controllable costs, as used in a responsibility accounting system, consists only of variable costs. Which of the following is a reason why companies should budget? To plan for future operations and resource requirements. To provide expectations against which actual operations can be compared. To facilitate goal congruence. To communicate the expectations of management to employees. All of the above are reasons why companies should budget. Which of the following is NOT an advantage of decentralized operations? Employees experience increased motivation since they are a part of the decision making team. Relationships with customers are improved due to a quicker response time. The information available to make decisions is more accurate. The possibility that efforts will be duplicated is increased. Top managers are freed from daily decision making and are able to focus on strategic decision making