The cash budget is always prepared firs true false Even in t

The cash budget is always prepared firs

true false

Even in the face of changing conditions, attaining the original budget is critical and is the only true measure of success.

true false

Participation of employees in the budgeting process helps create greater commitment towards the budget.

true false

A variance is the difference between an actual result and a budgeted performance

true false

For revenue items, a favorable variance means that actual revenues are less than expected.

true false

Solution

1)

Operating budgets like sales budget, manufacturing expenses budget, selling expenses budget and operating expenses budgets are first prepared and then those budgeted estimates are used for preparing cash budget.

Hence, given statement is False.