1. Insufficient information is never a problem with budgeting

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True

False

2. Static budgets (budgets that do not change) are better than flexible budgets.

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True

False

3. One disadvantage of budgeting is that it can reward short-term goals at the expense of long-term success.

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True

False

4. Managers need to update their plans whenever something happens to change their business unit's prospects in a material way.

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True

False

5. Using budgets to evaluate the managers performance is always a good thing to do.

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True

False

6. A budget can help you gauge profitability, manage costs, and easily spot red flags.

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True

False

7. A company should NOT create several budgets, for best- and worst-case scenarios.

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True

False

8. Managers often have incentives to set low targets in budgets to ensure success.

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True

False