1. Standard costs can be used by management to assess the reasonableness of actual costs incurred. TRUE FALSE 2. A cost variance is the difference between actual cost and standard cost. TRUE FALSE 3. Other names for the Fixed Budget include the Master Budget, Static Budget, and Flexible Budget TRUE FALSE 4. Management by exception means that managers focus on the most significant differences between actual costs and standard costs. TRUE FALSE 5. Unfavorable variances result from decreased revenues and/or decreased costs. TRUE FALSE 6. Favorable variances result from increased revenues and/or decreased costs. TRUE FALSE 7. The Flexible Budget is based on the actual number of units sold. TRUE FALSE 8. Revenues in the Flexible Budget are determined by the actual sales price. TRUE FALSE 9. Fored Costs of the Flexible Budget always equals the Foxed Costs of the Fixed Budget, given within the relevant range TRUE FALSE 10. The Sales-Volume Variance is the difference in Operating Income between the Flexible Budget and Actual Results TRUE FALSE 11. In evaluating Direct Manufacturing cost variances, the two variances are Price and Quantity variances TRUE FALSE 12. An Unfavorable Direct Materials Price variance could be due to the purchasing manager buying large amounts of direct material at a bargain price. TRUE FALSE 13. A favorable Direct Labor Efficiency variance could be due to better trained employees and well maintained equipment in the factory. TRUE FALSE 14. The two Variable Overhead variances are called: A. Rate and Efficiency B. Rate and Quantity C. Spending and Efficiency D. Spending and Production Volume 15. Variable overhead expenses are based on long-range planning involving capacity concerns. TRUE FALSE