General Studies · Budgetary Control

Consider the following statements regarding budgetary control and responsibility accounting in a banking institution: Statement 1: The process of Budgetary Control necessitates the establishment of a formal Budget Committee comprising senior executives from various functional areas to ensure departmental budgets synchronize with strategic bank objectives and centralized coordination resolves conflicting resource requirements before master budget approval. Statement 2: A comprehensive Cash Budget is prepared by aggregating all non-cash expenses such as depreciation, amortization, and provisions for non-performing assets with the projected cash inflows to determine statutory liquidity requirements. Statement 3: The concept of Responsibility Accounting implies that a profit center head's performance should be evaluated based on the institution's total net profit including allocated corporate overheads, even if they have no direct control over those centralized costs. Which of the options below correctly describes the validity of these statements?