In the absorption costing income statement, deduction of the eost of goods sold from sales yields net profit B. False In contribution margin analysis, the unit price or unit cost factor is computed as: A. the difference between the actual unit price or unit cost and the planned unit price or cost, multiplied by the planned B. the difference between the actuial quantity sold and the planned quantity sold, multiplied by the actual unit sales price the ditferenee between the actual unit price or unit cost and the planned unit price or cost, multiplied by the actual D. the difference between the actual quantity sold and the planned quantity sold, multiplied by the planned unit sales 34 quantity sold quancity price or unit cost The budget process involves doing all the following exeept: A. establishing specifie goals B dismissing all managers who fail to achieve operational goals specified in the budget C executing plans to achieve the goals D. periodically comparing actual results with the goals 36 The first budget to be prepared is usually the sales budget A. True B. False Which of the following budgets provides the starting point for the preparation of the direct labor cost budger? A. Direct materials purchases budget B. Labor budget C. Cash budget D. Production budget 38 A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed A flexible budgeting B. master budgeting C. continuous budgeting D. zero-based budgeting 39 Budgets need to be fair and attainable for employees to consider the budgct important in their normal daily activities. Which of the following is not considered a human behavior problem? . Setting goals among managers that conflict with one another B. Allowing goals to be so low that employees develop a "spend it or lose it" attitude C. Setting goals too tightly making it difficult to meet performance expectation D. Allowing employees the opportunity to be a part of the budget process The budgetary unit of an organization which is led by a manager who has both the authority over and sponsibility for the unit's performance is known as a control center managerial department budgetary area responsibility center Page 5 of 5