Part 1. True/False (3 points each) 1) Accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. F 2) Operations is a measure used in the Balanced Scorecard. T F 3) Budgets are normally used by only profit-making businesses T F 4) The sales budget is derived from the production budget. T F 5) All costs in a process costing system ultimately pass through the Cost of Goods Sold account when the goods are sold. ) F 5) A process cost system has only 1 work in process account. T F Once a static budget has been determined, it is changed regularly as the underlying activity changes. F T F A zero-based budget allows managers to start by using last year's budget numbers. F The statement of cash flows shows the effects on cash of a company's operating, investing, and financing activities. F Large favorable budget variances should be investigated as well as large Infavorable variances