5) For budgets to be effective A. Goals should be attainable. B. Employees affected by a budget should be consulted when it is prepared. C. Evaluations should be made carefully with opportunities to explain any failures. D. They should be properly applied to avoid negative effects. E. All of the options are correct 6) September forecast projects that 6,000 units are going to be purchased at a cost of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total September cost of goods sold is anticipated to be: A. $63,000. B. $67,500. C. $61,250. D. $61,425. E. $12,075 7) A department store has budgeted sales of 12,000 men's suits in June. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory June is expected to be 4,000 suits. What is the dollar amount of June sales of suits? Each suit sells for A. $ 750,000. B. $ 900,000. C. $1,050,000. D. $1,200,000. E. $1,350,000. 8) What should not be considered in preparing a cash budget: A. Cash receipts from customers. B. Amortization expense. C. Depreciation expense. D. Cash payments for income taxes. E. B and C. 9) A cost center is a unit of a business that incurs costs but does not directly generate revenues following are considered cost centers except: A. Accounting department. B. Purchasing department. C. Groceries department. D. Advertising department E. All of these could be considered cost centers