1- At the break-even point:

A- Contribution margin would be equal to fixed expenses.

B- Contribution margin would be qual to net operating income.

C- Sales would be equal to contribution margin.

D- Sales would be equal to fixed expenses.

2- What is meant by continuous budget?

A- A budget prepared from first principles.

B- A budget that is based on the previous year, adjusted for known changes.

C- A budget that rolls forward one month as the current month is completed.

D- The variable elements of a budget, excluding fixed costs.

3- Which of the following is not a benefit of budgeting?

A- It promotes study, research, and a focus on the future.

B- It is a source of motivation.

C- It is a means of coordinating business activities.

D- It will prevent net losses from occurring.