1) TRUE FALSE An unfavourable variance is always journalized as a credit.

2) TRUE FALSE A favourable variance is always journalized as a credit.

3) TRUE FALSE The materials price variance is always based on the quantity of materials used.

4) TRUE FALSE In journalizing the materials efficiency variance, the account Work-In-Process is debited for the standard input allowed for actual output X actual price.

5) TRUE FALSE Flexible Budget can be defined as, standard input allowed for actual output X standard price.