Question 1: (2 marks: 0.5 mark for each ease). Answer the following multiple-choice questions. Only one answer is correct. 1) Which of the following budgets are prepared before the sales budget? Direct Labor Budget Yes A) B) Budgeted Income Statement Yes Yes No No No Yes No D A) Choice A B) Choice B C) Choice C D) Choice D 2) Which of the following statements is NOT correct concerning the Cash Budget? A) It is not necessary to prepare any other budgets before preparing the Cash Budget. B) The Cash Budget should be prepared before the Budgeted Income Statement. C) The Cash Budget should be prepared before the Budgeted Balance Sheet. D) The Cash Budget builds on earlier budgets and schedules as well as additional data. 3) When preparing a direct materials budget, the required purchases of raw materials in units equals: A) raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials. B) raw materials needed to meet the production schedule - desired ending inventory of raw materials - beginning inventory of raw materials. C) raw materials needed to meet the production schedule - desired ending inventory of raw materials + beginning inventory of raw materials. D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials. 4) There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget? A) It details the required direct labor hours. B) It details the required raw materials purchases. C) It is calculated based on the sales budget and the desired ending inventory, D) It summarizes the costs of producing units for the budget period