1. The principle managers follow when they only investigate significant departures from the plan is commonly known as small amounts don't matter only materials and labor deserve attention management by exception exceptional costs yield exception results 2. Marco Diner produced and sold 2,000 bagels last month and had fixed costs of $6,000. If production and sales are expected to increase by 10% next month, which of the following statements is true? Total fixed costs will increase. Total fixed costs will decrease. Fixed cost per unit will increase. Fixed cost per unit will decrease. 3. Which of the following is not a manufacturing cost? Manufacturing overhead Direct materials Direct labor Administrative expenses 4. A form used to accumulate the cost of producing an item is called a(n) job-cost sheet material requisition balance sheet invoice 5. Why is it necessary to compute equivalent units separately for materials and conversion costs? Mistakes are made in the accounting for these costs Materials and conversion enter the production process at different rates Conversion costs are more difficult to estimate None of the above reasons are true 6. The Freedom Corporation