c. It focuses only on variable costs. d. It is prepared for a specific project. 12. What is the role of a budget committee in the budgeting process? a. Implementing the budget. b. Preparing the budget. c. Reviewing and approving the budget. d. Auditing the budget. 13. Which variance compares the actual quantity of materials used with the standard quantity allowed for actual production? a. Materials price variance. b. Materials usage variance. c. Labour rate variance. d. Labor efficiency variance. 14. What type of budget allows for adjustments based on changes in business conditions or external factors? a. Flexible budget. b. Master budget. c. Rolling budget. d. Zero-based budget. ABC Corporation expects to sell 2,000 units of its sneakers in January and 2,500 units in February. The sales price per unit is $50. Collection is 80% in the month of sale, 20% in the following month, and the remainder in the second month. 15. Calculate cash collections for January. a. E100, 000. b. E120,000. c. E80,000. d. E110,000. 16. Calculate cash collections for February. a. $200,000. b. E180,000. c. E160,000. d. E120,000. 17. What is the average cash position for the two months? a. $200,000. b. $180,000