1 Normal 1 No Spac... Heading 1 A E B Heading 2 Title 9c Neplace Select 2 Paragraph Styles Editing 1. T, F. Value-based costing systems try to provide customers with goods and services that provide value that they can pay for. 2. T, F. The first step in implementing value-based system is the analysis of value chain. 3. T. F. The end-result of value-chain analysis is the grouping of costs into value-adding and non-value adding costs. 4. T. F. Cost hierarch consists of five distinct levels of cost. 5. T. F. Backflush Costing Method was developed with the aim of making product costing efficient. 6. T, F. JIT is one of the tools for management's continuous improvement application. 7. T, F. One of the false assumptions about CVP analysis is that all production is sold 8. T, F. Margin of safety is the distance between break-even point and actual sales to the right of the breakeven point. 9. T, F. Capital Budget is different from capital expenditure budget that is meant to improve the productive capacity of an organization. 10. T, F. Budgeting in many business organization creates a lot of tension because of the scarcity of available resources for allocation to competing needs. 11. T, F. Budgets are nothing more than road maps that lead to various destinations which if not properly managed could lead to malpractices by staff. 12. T. F. Selling and administrative expense budget is the last budget to be prepared before the Financial Budgets. 13. T, F. One of the most important advantages of budgets is that it enhances communication and coordination of activities within an organization for achievement of organizational goals, 1 Normal 1 No Spac... Heading 1 A E B Heading 2 Title 9c Neplace Select 2 Paragraph Styles Editing 1. T, F. Value-based costing systems try to provide customers with goods and services that provide value that they can pay for. 2. T, F. The first step in implementing value-based system is the analysis of value chain. 3. T. F. The end-result of value-chain analysis is the grouping of costs into value-adding and non-value adding costs. 4. T. F. Cost hierarch consists of five distinct levels of cost. 5. T. F. Backflush Costing Method was developed with the aim of making product costing efficient. 6. T, F. JIT is one of the tools for management's continuous improvement application. 7. T, F. One of the false assumptions about CVP analysis is that all production is sold 8. T, F. Margin of safety is the distance between break-even point and actual sales to the right of the breakeven point. 9. T, F. Capital Budget is different from capital expenditure budget that is meant to improve the productive capacity of an organization. 10. T, F. Budgeting in many business organization creates a lot of tension because of the scarcity of available resources for allocation to competing needs. 11. T, F. Budgets are nothing more than road maps that lead to various destinations which if not properly managed could lead to malpractices by staff. 12. T. F. Selling and administrative expense budget is the last budget to be prepared before the Financial Budgets. 13. T, F. One of the most important advantages of budgets is that it enhances communication and coordination of activities within an organization for achievement of organizational goals