1. In making an outsourcing decision to buy rather than make a product component, fixed manufacturing costs on factory space that has no other use are considered relevant to the decision.

Group of answer choices

True

False

2.The objective of sales mix decision analysis (assuming a constraint on resources) is to select the alternative that maximizes contribution margin per constrained resource.

Group of answer choices

True

False

3.Percentage differences from budget are often more useful in performance evaluation than dollar amounts; many managers would consider a five percent variance from budget not excessive.

Group of answer choices

True

False

4.A report to be used in performance evaluation of a subunit manager should contain only cost or revenue items that the subunit manager can control.

Group of answer choices

True

False

5. Ignoring qualitative considerations, a company segment whose segment margin is constantly negative should be dropped.

Group of answer choices

True

False

6. When labor is used in manufacturing and the company uses a standard costing system, the journal entry to record labor is a debit to the Work-in-Process account for the standard cost amount (not actual cost); the entry also includes any favorable labor variances as debit amounts in variance accounts.

Group of answer choices

True

False

7.A manager can improve the performance evaluation of an investment center by decreasing assets.

Group of answer choices

True

False

8.The total manufacturing overhead variance is the difference between standard variable manufacturing overhead costs and standard fixed manufacturing overhead costs.

Group of answer choices

True

False

9.The fixed overhead volume variance measures the use of existing facilities and capacity.

Group of answer choices

True

False

10.If a company sells two products, and Product A has sales of $40,000 and a contribution margin ratio of 30% while Product B has sales of $60,000 and a contribution margin ratio of 40% then the weighted average contribution margin ratio for the firm as a whole is 36%.

Group of answer choices

True

False