1) An equipment's book value is the original cost plus accumulated depreciation.

A) TRUE B) FALSE

2) The contribution margin per unit of a given product guides managers when deciding which product to emphasize in a sales mix. A) TRUE B) FALSE

3) Budgetary slack helps buffer managers from budget cuts imposed by higher-level management.

A) TRUE B) FALSE 4) The direct materials price variance is based on the standard quantity of inputs allowed for the actual output.

A) TRUE B) FALSE