33 In the absorption costing income statement, deduction of the cost of goods sold from sales yields net profit. A. True B. False In contribution margin analysis, the unit price or unit cost factor is computed as: A. the difference between the actual unit price or unit cost and the planned unit price or cost, multiplied by the planned quantity sold B the difference between the actual quantity sold and the planned quantity sold, multiplied by the actual unit sales price or unit cost C the difference between the actual unit price or unit cost and the planned unit price or cost, multiplied by the actual quantity sold D. the difference between the actual quantity sold and the planned quantity sold, multiplied by the planned unit sales price or unit cost 35 The budget process involves doing all the following except: A. establishing specific goals B. dismissing all managers who fail to achieve operational goals specified in the budget C. executing plans to achieve the goals D. periodically comparing actual results with the goals The first budget to be prepared is usually the sales budget. A. True B. False 36. 37 Which of the following budgets provides the starting point for the preparation of the direct labor cost budget? A. Direct materials purchases budget B. Labor budget D. Production budget 38 A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed: A. flexible budgeting B. master budgeting C. continuous budgeting D. zero-based budgeting 39 Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem? A. Setting goals among managers that conflict with one another B. Allowing goals to be so low that employees develop a "spend it or lose it" attitude C. Setting goals too tightly making it difficult to meet performance expectation D. Allowing employees the opportunity to be a part of the budget process 40 The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a A. control center B. managerial department C. budgetary area D, responsibility center Page 5 of S