In computing percentage of completion of ending work in process, a lower percentage-of-completion was attached to each component of inventory than actually was the case. What is the resultant effect of this error on the calculation of cost per equivalent unit? A. No effect B. Understate C. Overstate D. Cannot be determined E. None of these.

The top-down budget development approach the budget: A. is imposed on lower-level personnel who rarely are involved in budget construction. B. centers on lower-level employee participation. C. process begins with the issuance of general guidelines by top management. D. Both B and C. E. None of these.

If budgeted sales increase from $100,000 to $110,000, budgeted production: A. should be increased by $10,000. B. should be increased by 9.1%. C. should be increased by 10%. D. could possibly decrease. E. None of these.