1) Which of the following statements is true of a peanut-butter costing system? * A) A peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects. C) A peanut butter costing system assumes that all costs are variable. B) In a peanut butter costing system, costs of activities are used to assign costs to other cost objects such as products or services based on the activities the products or services consume. D) A peanut butter costing system typically has more-homogeneous indirect cost pools. 2) Aqua Company produces two products- Alpha and Beta. Alpha has a high market share and is produced in bulk. Production of Beta is based on customer orders and is custom designed. Also, 55% of Beta's cost is shared between design and setup costs, while Alpha's major portions of costs are direct costs. Alpha is using a single cost pool to allocate indirect costs. Which of the following statements is true of Aqua? C) Aqua will overcost Beta's indirect costs because beta has high indirect costs. D) Aqua will overcost Beta's direct costs as it is using a single cost pool to allocate indirect costs. A) Aqua will undercost Alpha's indirect costs because alpha has high direct costs. B) Aqua will overcost Alpha's indirect costs as it is using a single cost pool to allocate indirect costs. 3) Which of the following is true of a budget? B) Budgets are used to express only the operational plans and not the strategic plans of a company. A) Budgets are most useful when they are planned independent of the company's strategic plans. D) Budgets do not account for nonfinancial aspects of the upcoming period. C) Budgets help managers to revise their plans and strategies. 4) A master budget A) is only prepared for manufacturers as they are the only type of company with material purchases and work-in-process accounts. B) is another name given to the financial budget C) improves companies' market capitalization and evolves from both the investing and financing decisions D) is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions