1. A budget is A. a planning tool B. a control tool C. a mean of communicating goals to the firm's divisions D. all the above 2. Which of the following is an advantage of the budgeting process? A. Budgeting provides resource information for decision making. O O B. Budgeting provides a standard for performance evaluation. O C. Budgeting improves communication and coordination within the organization. O D. All of the above 3. Which of the following is usually prepared before the production budget? A. Direct materials purchases budget B. Direct labor budget C. Sales budget D. Cash budget