True or False
1) A production budget must be prepared before a sales budget.
2) The budgeted income statement indicates the expected profitability of next year’s operations.
3) If a monthly “cash budget” budget is prepared properly, there will never be a cash deficiency at the end of any month.
4) “Cost centers”, “profit centers” and “investment centers” can be classified as “responsibility centers”
5) A flexible budget is a series of static budgets at different levels of activity.
6) The master budget is not used in the budget control process.
7) Certain budget reports are prepared monthly, while others are prepared more frequently depending on the activities being monitored.