1: On the basis of the budget reports,

management analyzes differences between actual and planned results.

management may take corrective action.

management may modify the future plans.

All of these answers are correc

2:Which one of the statements is correct about controllable costs?

More costs are controllable as one moves downward in management levels.

Variable costs are controllable and fixed costs are not.

A cost is controllable if it is incurred directly in a managers division or segment.

Allocated costs are controllable.

3:In developing a flexible budget within a relevant range of activity,

it is necessary to prepare a budget at 1,000 unit increments.

only fixed costs are included.

it is necessary to relate variable cost data to the activity index chosen.

variable and fixed costs are combined and are reported as a total cost.

4:The formula for the materials quantity variance is

(AQ AP) (AQ SP).

(AQ AP) (SQ SP).

(AQ SP) (SQ SP).

(SQ AP) (SQ SP).