72. Because variable costs are assumed to change in proportion to changes in the activity level, graph direct variable costs when plotted against the activity level appears as a circle. 73. A report analyzing how many products need to be sold to cover operating costs is not typically a managerial 74, Managerial accounting information includes both historical and estimated data. 75. Variable costs are costs that vary in total in direct peoporion to changes in the activity level. 76. The point in operations at which revenues and expired costs are exactly equal is called the break-even point 77. budget procedure that provides for the maintenance a projection into the A at all times of future is called master budgeting 78. Conversion is the combination of direct labor cost and factory overhead cost. cost 79. Any difference between the fair market values securities and their cost is realized sain or loss. a ofthe 80. Direct labor costs are included in the conversion costs of product. 81. Budgets are prepared in the Accounting Department and monitored by various department managers. 82. the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment. next. 83. After the sales budget is prepared, the capital expenditures budget is normally prepared 84. An equity investment in less than 20% another company's stock is accounted for using cost method. the of 85. The flexible budget is, in effect, a series of static budgets for different levels of activity. 86. Conversion costs are the combination of direct labor, direct material and factory overhead costs. 87. Budgets are normally used only by profit-making businesses. 88. Investment in Bonds is listed on the balance sheet after Bonds Payable. 89. Managerial accounting reports must be useful to the user of the information. is used to effectively communicate planned expectations regarding profits and 90. to the entire organization. expenses