1. In order to sell its products, a company must meet the competitions price. Which of the following is TRUE about the companys product?

   a		The company is a price-setter.
   b		There is not a lot of competition for the product.
   c		The product lacks uniqueness.
   d		The company uses cost-plus pricing.

2. When evaluating a cost centre, the performance reports generally focus on the:

   		revenue and expenses.
   		flexible budget variance.
   		sales volume variance.
   		flexible budget variance and profit variance.

3. SPI-K is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation. Variable factory overhead is paid in the month incurred) If the budgeted cash disbursements for factory overhead for September are $80,000, then the budgeted production in units for September must be?

   		6,200.
   		6,500.
   		7,000.
   		7,400.