49. Which is true of budgets? A) They are used in the planning, but not in the control, process. B) They are voted on and approved by stockholders. C) They are used in performance evaluation. D) There is a standard form and structure for budgets. 50. Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable? A) Department managers should only be held accountable for controllable variances for their departments. B) Department managers should be held accountable for all variances from budgets for their departments. C) Department managers' performances should not be evaluated based on actual results to budgeted results. D) Department managers should be credited for favorable variances even if they are beyond their control. 51. Cash flow from investing activities is considered the most important category on the statement of cash flows because it is considered the best measure of expected income. A) True B) False 52. Using standard costs A) provides a basis for evaluating cost control. B) increases clerical costs. C) makes management by exception more difficult. D) makes employees less "cost-conscious. 53. A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,000 pounds of direct materials were purchased for $3,800. The direct materials price variance for last month was A) $3,800 favorable. B) $200 favorable. C) $100 favorable. D) $200 unfavorable