1) Which budget is the starting point in preparing financial budgets?Group of answer choicesA) the budgeted balance sheetB) the capital expense budgetC) the budgeted income statementD) the cash receipts budget2) The direct materials budget is prepared using which budget's information?Group of answer choicesA) raw materials budgetB) cash receipts budgetC) cash payments budgetD) production budget3. Which of the following includes only financial budgets?Group of answer choicesA) budgeted income statement, direct material purchases budget, cash budgetB) production budget, capital asset budget, budgeted balance sheetC) cash budget, budgeted balance sheet, capital asset budgetD) capital asset budget, budgeted income statement, sales budget4. When is the material price variance favorable?Group of answer choicesA) when the actual price paid is greater than the standard priceB) when the actual quantity used is less than the standard quantityC) when the actual price is less than the standard priceD) when the actual quantity used is greater than the standard quantity.5.What are some possible reasons for a direct labor time variance?Group of answer choicesA) less qualified workersB) utility usage decreaseC) office supplies spendingD) sales decline