Part I. 2 points each-5 questions 1. A flexible budget: ( A. classifies budget requests by activity and estimates the benefits arising from each activity B. presents a statement of expectations for a period of time but does not present a fim commitment. C. presents the plan for only one level of activity and does not adjust to changes in the level of activity. D. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels. 2. Assume there is no beginning work in process inventory and the ending work in process inventory is 100 % complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: ( A. the same as the number of units put into production. B. less than the number of units put into production. C. the same as the number of units completed. D. less than the number of units completed. 3. The general model for calculating a quantity variance is: ( A. standard price x (actual quantity of inputs used - standard quantity allowed for output). B. actual quantity of inputs used x (actual price - standard price). C. (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price). D. actual price x (actual quantity of inputs used - standard quantity allowed for output). 4. Consider a decision facing a company of either accepting or rejecting a special offer for one of its products. A cost that is not relevant is: ( A. direct materials. B. variable overhead. C. fixed overhead that will be avoided if the special offer is accepted. D. common fixed overhead that will continue if the special offer is not accepted. 5. Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? ( A. A reduction in expenses. B. An increase in net operating income. C.An increase in operating assets. ) D. An increase in sales