Reference no: EM132319285

Question

True or False questions

1. Activity drivers should be classified as either unit-level or non unit-level.

2. Product diversity means that products consume overhead activities in systematically different proportions.

3. The consumption ratio is the amount of each activity consumed by a product.

4. The master budget is composed of operating budgets and financial budgets.

5. Control is achieved by comparing actual results with budgeted results on a periodic basis.

6. Planning is looking ahead to see what actions should be taken to realise particular goals.

7. Budgets identify objectives and the actions needed to achieve them because they are foresighted financial plans.

8. Managers develop quantity standards when they decide what amount of input should be used per unit of output.

9. Managers develop price standards when they determine what amount of input should be paid for the quantity of input to be used.

10. The standard cost per unit of output for a particular input is calculated by multiplying the standard input price by the standard input allowed per unit of output produced.