For each of the following statement, answer T or F and explain why shortly.

1. The standard direct labor rate would not include any allowance for fringe benefits or other labor-related costs.

2. Standards set by an organizations must reflect efficiency future operations of that organization.

3. Management by exceptions means that a manager's attentions must be directed to those parts of an organization where things are proceeding in accordance with plans.

4. A cost variance is favorable if the actual price or quantity is greater than standards price or quantity.

5. Included in direct material quantuty standards should be an allowance for unavoidable waste, spoilage, and other normal inefficiencies.

6. In standard costing, practical standards can be used to forecast cash flows and to plan inventory, as well as to signal abnormal diviations in costs.