1. ABC Inc. uses a cost structure that includes some specific cost categories that behave as fixed costs, some variable costs, and some mixed costs. As ABC 's activity (units produced and sold) level increases the average cost (on a per unit basis) for each of the three cost types identified above will a. increase, increase, increase b. decrease, decrease, decrease c. not change, not change, not change d. decrease, increase, decrease e. increase, decrease, no change f. none of the above 2. The budgeting process usually begins with forecasting the value of future a. Cash Flow b. Costs as a percentage of Sales c. Sales d. Labor costs 3. During the preparation of a complete cash budget, the following line item would normally not appear a. Cash collection from Sales b. Dividends c. Loan principal Repayments d. Equipment Purchases e. None of the above