Which of the following statements is correct? O Long-range planning is just another term for budgeting. O Budgeting and long-range planning differ with respect to emphasis, detail and time period. O The only difference between budgeting and long-range planning is the time frame. O Budgeting is the first step in long-range planning. Under what situation might a budget be most effective? O budgets are equally effective in all situations O as a tool to assess blame when costs are too high when it is created by top management O when used to evaluate a manager's performance Which one of the factors below is not a major influence on the length of budget periods? O prevailing business conditions O the type of budget O the nature of the organization O the profitability of the company Which one of the following is a benefit of using participative budgeting? O It is updated daily to reflect current activity. O Lower level managers are more likely to perceive budgets as fair. O It allows companies to compare the current with the previous year. It assures the company is operating at the activity level of the master budget. O It is a budget that is constantly being revised as new information is gained. O It is a term used to describe a budget that is prepared by a budget committee that meets on a continuous basis. It is a budget that covers every aspect of the production process from the purchase of raw materials to the collection of revenue from sales. It is a budget where the time period just completed is dropped and an equal future time period is added. In preparing one of its budgets, Hartz, Inc. used information from both the direct materials and direct labour budgets. Which budget was Hartz preparing? sales budget manufacturing overhead budget production budget cash budget Which one of the following is a critical factor in budgeting for a service company? determining client needs O budgeting expenditures before anticipated receipts O determining how to allocate the disproportionate costs O coordinating professional staff needs with anticipated services