Evaluate whether each statement is true or false.

1. A benefit of self-imposed budgets is that managers are able to create some budgetary slack to ensure the company is able to meet its targets. [ Select ] ["True", "False"]

2. Good budgeting systems must have two key components: good planning regarding goals and effective control over the execution. [ Select ] ["True", "False"]

3. If the actual level of activity is 12% higher than planned, all costs in the static budget should be increased by 12% before comparing them to actual costs. [ Select ] ["False", "True"]

4. Both traditional and ROTH IRAs have tax benefits; however, ROTH IRAs are the better option because the earnings are never taxed. [ Select ] ["False", "True"]

5. Budget estimates prepared by front-line managers are often more accurate and reliable than estimates prepared by top managers of the company.