38. A budget is a formal document that quantifies a companys plans for achieving its goals. (True or False)

39. The first step in the budget process is preparing the sales forecast. (True or False)

40. Managers may be tempted to pad the budget to meet performance targets. (True or False)

41. Which of the following is the comprehensive planning document that incorporates a number of individual budgets?

A. Static budget

B. Master budget

C. Flexible budget

D. Collective budget

42. Which of the following is not a method that can reasonably be used to forecast sales?

A. Trends in the companys sales data

B. Production capacity

C. Estimates from the companys salespersons

D. Mathematical models adjusted by an experienced manager using professional judgment

43. When budgets are used for evaluation, what is the difference between budgeted and actual amounts called?

A. Exceptions

B. Budget variances

C. Performance results

D. Flexible budgets