You have a friend that is a young entrepreneur. He approached a bank for a loan and the bank asked him to provide a budget for his business. He knows you are very well trained in management accounting and asked you to explain to him how he could go about preparing a budget for his business. Which of the following would be discussed with your friend as you explain the critical stages in the budgeting process: (i) Identify any bottlenecks that exist in the business. (ii) Prepare the sales budget (iii) Demand the use of responsibility accounting in the business. Which of the following statement(s) is/are true