5. The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as: a. flexible budgeting b. continuous budgeting c. zero-based budgeting d. master budgeting Assembly salaries and cutting department wages would normally appear in the direct labor cost budget. a. True b. False The sales budget is the starting point for preparation of the direct labor cost budget. 7. a. 8. True b. False The first budget to be prepared is usually the cash budget. a. True b. False