A) should not be prepared in a company B) is useful in evaluating a manager's performance by comparing actual variable costs 23. A static budget and planned variable costs C) shows planned results at the original budgeted activity level. is changed only if the actual level of activity is different than originally budgeted. b) 24. A master budget consists of A) an interrelated long-term plan and operating budgets. B) financial budgets and a long-term plan. C) interrelated financial budgets and operating budgets. D) all the accounting journals and ledgers used by a company 25. Billings Company has the following costs when producing 100,000 units $600,000 900,000 Variable costs Fixed costs An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000. The net increase (decrease) in the net income of accepting the supplier's offer is A) $285,000. B) S315,000 C) S(15,000). D) $840,000. 26. What is "balanced" in the balanced scorecard approach? The number of products produced A) B) C) D) The emphasis on financial and non-financial performance measurements The amount of costs allocated to products The number of defects found on each product 27. The first step in developing a flexible budget is to identify the activity index and the relevant range of activity. indentify the variable costs and determine the budgeted variable cost per unit of activity identify the fixed costs and determine the budgeted amount for each cost. prepare the budget for selected increments of activity within the relevant range. A) B) C) D)