3. Managerial accounting information: A. Is used mainly by external users. B. Can be used for control purposes but not for planning purposes. C. Involves gathering information about costs for planning and control decisions. D. Is generally the only accounting information available to managers. E. Has little to do with controlling costs. 4. Identify the situation that will result in a favorable variance. A. Actual costs are higher than budgeted costs. B. Actual revenue is higher than budgeted revenue. C. Actual income is lower than expected. D. Actual expenses are higher than budgeted expenses. E. Actual revenue is lower than budgeted revenue. 5. A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is: A. Traditional budgeting B. Master budgeting C. Management budgeting, D. Activity-based budgeting, E. Cash budgeting