10. The flexible budget is, in effect, a series of static budgets for different levels of activity. a. True b. False 11. The difference between the standard cost of a product and its actual cost is called a variance. a. True b. False 12. Standards are set for only direct labor and direct materials. a. True b. False 13. A centralized business organization is one in which all major planning and operating decisions are made by top management a. The b. False 14. The return on investment may be computed by multiplying investment turnover by the profit margin. a. True b. False 15. Differential analysis can aid management in making decisions on a variety of alternatives, including whetherdo discontinue an unprofitable segment and whether to replace usable plant assets. a. True b. False 16. In deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses. a. True b. False 17. The computations involved in the net present value method of analyzing capital investment proposals are less involved than those for the average rate of return method. a. True b. False 18. If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. a. True b. False