1) Management by exception means that managers focus on the most significant differences between actual costs and standard costs.

True

False

2)

An overhead cost variance is the difference between the total overhead actually incurred for the period and the standard overhead applied to products.

True

False

3)

A flexible budget performance report compares the differences between:

Actual performance and budgeted performance based on actual sales volume.

Actual performance over several periods.

Budgeted performance over several periods.

Actual performance and budgeted performance based on budgeted sales volume.

Actual performance and standard costs at the budgeted sales volume.

4)

The type of department that generates revenues and incurs costs, and its manager is responsible for the investments made in operating assets is called a:

Profit center

Cost center

Service department

Investment center

Responsibility center