1) When budgeted cost-allocations rates are used:A) variations in actual usage by one division affect the costs allocated to other divisionsB) the manager of the supplier division bears the risk of unfavorable cost variancesC) user divisions pay for costs that exceed budgeted amountsD) user divisions pay for inefficiencies of the supplier departmen

An advantage of a flexible budget is that it. A considers only variable costs B. incorporates adjustments caused by volume changes to better reflectperformance. C. allows management freedom in meeting goals. D. allows comparison of actual costs to previous years' budgeted costs. E. minimises unfavourable budget variances.

YouWhich one is true ? A budget is A determines and evaluates the cost of specific products or activities in a businessB is used to determine if a product should be continued or discontinuedC compiles actual costs for a given periodD quantifies management's plans

3. Budgeted production depends on:a. the direct materials usage budget and direct material purchases budgetb. the direct manufacturing labor budgetc. budgeted sales and expected changes in inventory levelsd. the manufacturing overhead costs budget

Which costs remain constant in total as the budgeted volume of activity changes, but they could change as a result of the managerial decision-making process?Multiple choice question.Variable costsFixed costsMixed costsLabor costs

A company uses the repeated distribution method to reapportion service department costs. The use of this method suggests: A the company’s overhead rates are based on estimates of cost and activity levels, rather than actual amounts B there are more service departments than production cost centres C the company wishes to avoid under or over absorption of overheads in its production cost centres D the service departments carry out work for each other.