Identify each statement as true or false. 1. Budget reports compare actual results with planned objectives. 2. 3. 4. All budget reports are prepared on a weekly basis. Management uses budget reports to analyze differences between actual and planned results and determine their causes. As a result of analyzing budget reports, management may either take corrective action or modify future plans. 5. Budgetary control works best when a company has an informal reporting system. 6. The primary recipients of the sales report are the sales manager and the vice-president of production. 7. The primary recipient of the scrap report is the production manager. 8. A static budget is a projection of budget data at one level of activity. 9. 10. Top management's reaction to unfavourable differences is not influenced by the materiality of the difference. A static budget is not appropriate in evaluating a manager's effectiveness in controlling costs unless the actual activity level approximates the static budget activity level or the behaviour of the costs is fixed. >