Which of the following statements is true of budgets?

A. Master budgets express management's operating and financial plans
B. Financial budgets are prepared before the master budget is prepared.
C. Operating budgets are prepared independently of the master budget.
D. The budgeted balance sheet is the first budget prepared as management is very much concerned with projected financial position.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)