13. Contribution margin is A) the B) available to cover fixed costs and contribute to income for the company C) sales less fixed costs. D) unit selling price less unit fixed costs amount of revenue remaining after deducting fixed costs. What is the primary difference between a static budget and a flexible budget? A) The statie budget contains only fixed costs, while the flexible budget contains only 14. variable costs. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels B) The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. The static budget is prepared only for units produced, while a flexible budget C) D) reflects the number of units sold What activities and responsibilities are not associated with management's functions? A) Planning B) Accountability C) Controlling D) Directing 15. 16. Book value of old equipment is considered to be a A) B) C) D) relevant cost. semi-relevant cost. sunk cost. cost that can be changed by a present or future decision. 17. Which of the following is not an operating budget? A) B) C) D) Direct labor budget Sales budget Production budget Cash budget 18. Which of the following are period costs? A) Raw materials B) Direct materials and direct labor C) Direct labor and manufacturing overhead D) Selling expenses