35. Which of the followin levels? g budgets allow for adjustments in activity a) Static budget. b) Flexible budget. c) Zero-based budget. d) Continuous budget. 36. The first budget prepared as part of an entity's master budget is the: a) Production budget. b) Cash budgets. c) Sales budget. d) Direct labor costs. 37.True/False: A favorable cost variance occurs when actual cost is more than budgeted cost at actual volumes. 38. True/False: The standard cost is how much a product should cost to manufacture. 39 True/False: A decentralized business organization is one in which all major planning and operating decisions are made by top management True/False: The three common types of responsibility centers are 40. referred to as cost centers, profit centers, and investment centers. If the price paid per unit for a product differs from the standard 41. price per unit, the variance is: a) Variable variance b) Controllable variance. c) Volume variance. d) Price variance. 42.If the actual quantity of direct materials used in producing a product differs from the standard quantity, the variance is: a) Controllable variance. b) Price variance. c) Quantity variance. d) Rate variance. 43. A responsibility center in which the department manager has responsibility for and authority over costs and revenue is call a (n): a) Profit center b) Investment center. c) Volume center. d) Cost center