3. Budgeting is usually most closely associated with which management function? a. Planning b. Directing c. Motivating d. Controlling

4. Which is true of budgets? a. They are voted on and approved by stockholders. b. They are used in the planning, but not in the control, process. c. There is a standard form and structure for budgets. d. They are used in performance evaluation

5. It is important that budgets be accepted by a. division managers only b. department heads only. c. supervisors only. d. All of these answers are correct.

6. A budget is most likely to be effective if a. it is used to assess blame when things do not occur according to plans. b. it is not used to evaluate a manager's performance. c. employees and managers at the lower levels do not get involved in the budgeting process it has top management support. d.

7. The most common budget period is a. one month. b. three months. c. six months. d. one year. a. generally presents more detailed information than an annual budget b. generally encompasses a longer period of time than an annual budget. c. is usually more accurate than an annual budget. d. is prepared on a quarterly basis if the budget is prepared on a quarterly basis.

8. Long-range planning

9. The total direct labor hours required in preparing a direct labor budget are calculated using the a. sales forecast. b. production budget. c. direct materials budget. d. sales budget