Answer the following statements true (T) or false (F)

1. The capital expenditures budget represents the company's plan for purchasing the long-term assets.
2. The forecast of sales revenue is the cornerstone of the master budget.
3. The level of forecasted sales has little effect on other elements of the master budget.
4. The production budget determines the number of units to be produced during the period.
5. If the amount of indirect materials needed for production is deemed to be insignificant, it should not be
included in the direct materials budget.


1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. TRUE

Business

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