of the following best describes costs assigned to the product under the absorption costing method? Direct labor (OL) Direct materials (DM) Variable selling and administrative (VSA) Variable manufacturing overhead (VOH) Fixed selling and administrative (FSA) Fixed manufacturing overhead (FOH) A) DL. DM, VSA, and Von B) DL DM, and VOH C) DL DM, VOH, and FOH D) DL and DM. E) DL DM, FSA, and FOH. The process of planning future business actions and expressing them as a formal plan is called: A) Budgeting 8) Cost accounting. C) Managerial accounting. D) Variance analysis. E) Standard cost analysis. 9. 10. The usual starting point for preparing a master budget is forecasting or estimating: A) Expenditures. B) Sales. C) Production. D) Income. E) Cash payments 11. The difference between actual price per unit of input and the standard price per unit of input r A) Standard variance. B) Quantity variance. C) Volume variance. D) Controllable variance E) Price variance. 12. Identify the situation below that will result in a favorable variance. A) Actual revenue is higher than budgeted revenue. B) Actual revenue is lower than budgeted revenue C) Actual income is lower than expected income. D) Actual costs are higher than budgeted costs. E) Actual expenses are higher than budgeted expenses. 13. A unit of a business that generates revenues and incurs costs is called a A) Performance center. B) Profit center C) Cost center. D) Responsibility center. E) Expense center