The key variable which is normally the starting point for the budget process and upon which many other items are based is:

Select one:

a. production.

b. sales.

c. factory capacity.

d. working hours of employees.

Budgets can be set for almost any area of business, including cash budgets, sales budgets, labour hours budgets and manufacturing budgets.

Select one:

True

False

If the actual electricity expense is $43.000 for the period, and the budgeted expense is $40,000, there is a favorable variance of $3,000.

Select one:

True

False