5. All the following choices exist for defining the denominator volume (denominator activity level) for assigning fixed overhead costs in a standard cost system, except: a. Budgeted capacity utilization. b. Actual capacity utilization C. Theoretical capacity. d. Practical capacity. 6. Operational control systems can be distinguished from financial control systems: C. a. Because financial control systems focus only on the long-term. b. Because operational control systems focus on the control of basic business processes. Because operational control systems use flexible, not static, budgets. d. Because operational control systems focus on explaining the total operating income variance for a period. 7. Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that: a. Additional investigation of variances is not necessary. b. The company's competitive strategy is not effective. C. Product mix changes are favorable but quantity variances are unfavorable. d. Direct labor efficiency needs to be addressed