1. In a competitive market, a company is forced to act as a price taker and must emphasize minimizing and controlling costs. A) True B) False 2. The cost-plus pricing approach establishes a cost base and adds a markup to this base to determine a target selling price. A) True B) False 3. The first step for time-and-material pricing is to calculate the material loading charge. A) True B) False 4. Divisions within vertically integrated companies normally sell goods only to other divisions within the same company. A) True B) False 5. In the formula for a minimum transfer price, opportunity cost is the contribution margin of goods sold externally. A) True B) False 6. Budgets are statements of management's plans stated in financial terms. A) True B) False 7. The budget itself and the administration of the budget are the responsibility of the accounting department. A) True B) False 8. The budget is developed within the framework of a sales forecast. A) True B) False