1.Purchase of poor quality materials will generally result in a favourable materials price variance and an unfavourable labour rate variance.

Select one:

True

False

2.The engineering approach is typically based on an evaluation of the physical quantity of inputs such as direct materials and direct labour required to produce a unit of output.

Select one:

True

False

3.

Only the variable costs identified with a product are relevant in a decision concerning whether to eliminate the product or not.

Select one:

True

False

4.

The "goodness of fit" statistic (that is, R-squared) associated with the least-squares regression method indicates the proportion of a mixed cost that is variable.

Select one:

True

False