$1.$ Why are budgets useful in the planning process? A$.$ They help communicate goals and provide a basis for evaluation. B$.$ They enable the budget committee to earn their paycheck. C$.$ They guarantee the company will be profitable if it meets its objectives. D$.$ They provide management with information about the company's past performance. $2.$ Which of the following items does not follow from the adoption of a budget? A$.$Deterrent to waste B$.$Basis for performance evaluation C$.$Guarantee of accomplishing the profit objective D$.$Promote efficiency $3.$ Which of the following statements about budget acceptance in an organization is true? A$.$Budgets are hardly ever accepted by anyone except top management. B$.$ The most widely accepted budget by the organization is the one prepared by top management. C$.$ Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. D$.$ The most widely accepted budget by the organization is the one prepared by the department heads. $4.$ An unrealistic budget is more likely to result when it A$.$ Has been developed in a top$-$down fashion. B$.$ Has been developed by all levels of management. C$.$ Has been developed in a bottom$-$up fashion. D$.$ Is developed with performance appraisal usages in mind. $5.$ In many companies, responsibility for coordinating the preparation of the budget is assigned to A$.$ The company's independent certified public accountants. B$.$ The company's internal auditors. C$.$ A budget committee. D$.$ The company's board of directors.