10. In a production budget, total required production units are the budgeted sales units plus A) beginning finished goods units. B) desired ending finished goods units. C) desired ending finished goods units plus beginning finished goods units. D) desired ending finished goods units minus beginning finished goods units. 11. The maintenance department of a manufacturing company is a(n) A) segment. B) profit center. C) cost center. D) investment center. 12. Which one of the following will not increase return on investment? A) Variable costs are increased B) An increase in sales C) Average operating assets are decreased D) Variable costs are decreased 13. On the basis of the budget reports, A) management analyzes differences between actual and planned results. B) management may take corrective action. C) management may modify the future plans. D) all of these. 14. Which of the following will cause an increase in ROI? A) An increase in variable costs B) An increase in average operating assets C) An increase in sales D) An increase in controllable fixed costs 15. What budgeted amounts appear on the flexible budget? A) Original budgeted amounts at the static budget activity level B) Actual costs for the budgeted activity level C) Budgeted amounts for the actual activity level achieved D) Actual costs for the estimated activity level