1. Which of the following best describes a standard? Broader than a master budget O Reported on a per-unit basis O Determined at the end of an accounting period O Reported only in financial terms 2. Variance analysis allows for a detailed investigation of various sources of differences from expectations. O True False 3. A static cost budget presents how much a company should have spent given the planned level of production. True False 4. Which of the following is true regarding an unfavorable variance? It is more important than favorable variances. O It reflects an undesirable scenario. O All else equal, actual net income is greater than budgeted net income. O All else equal, actual net income is less than budgeted net income. 5. Which of the following is true regarding cost variances? O Fixed overhead costs exhibit efficiency variances. O) Variable costs can exhibit spending, efficiency, and activity variances. O Materials costs have spending variances; labor costs have efficiency variances; overhead costs have activity variances. () All costs can exhibit spending, efficiency, and activity variances