1. An income statement prepared under absorption costing is the method required for external reporting, when adhering to IFRS.

   True

   False

2. The denominator level, is a level of activity that is derived in the static budget.

   True

   False

3. The only difference between the static budget and flexible budget, is that the static budget is prepared using planned output.

   True

   False

4. Pro-forma means budgeted.

   True

   False

5. Manufacturing overhead costs for the budget would include factory utility costs, but not sales supervisors salaries.

   True

   False