1.

Select the incorrect statement concerning the human factor of performance evaluation.

Just because a cost variance is labeled as favorable doesn't necessarily mean that the manager should be commended for a job well done.

Variances should not be used to single out managers for punishment.

Managers should always be punished for unfavorable variances.

Variances must be analyzed carefully to ensure that they are fully understood.

2.

Flexible budget amounts for variable costs and revenues come from multiplying standard per unit amounts by the planned volume of production.

True

False

3.

A static budget is one that shows estimated revenues and costs at multiple activity levels.

True

False (i think it is this one)