artment of a four-department 10. Additional materials are added in the second department of a fou production process. However, this addition does not increase the number of units being produced in the second department, but will: A. increase the equivalent units of production. B. increase the total cost per unit. C. decrease the value of the transferred-in costs. D. decrease the total costs to account for. 17. Which of the following statements is (are) false? (1) An organization's sales staff is more likely to provide a lower sales forecast than a forecast provided by market researchers. (II) The Delphi technique uses highly sophisticated computerized time series analysis to reduce the subjectivity surrounding the sales forecast A. Only I is false. B. Only II is false. C. Both I and II are false. D. Neither I nor II is false. 18. The production volume variance is computed by the difference between the: A. actual fixed overhead and applied fixed overhead. B. actual fixed overhead and budget at denominator level of activity planned. C. budget at actual levels of activity reached and fixed overhead applied. D. actual fixed overhead and budget at actual level of activity reached. 19. The basic difference between a master budget and a flexible budget is that a: A. master budget is for an entire production facility but a flexible budget is applicable to single departments only. B. flexible budget allows management latitude in meeting goals whereas a master budget is based upon a fixed standard. C. master budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range. D. flexible budget considers only variable costs but a master budget considers all costs. A-6