Q8: In the variable cost-plus approach, the markup percentage covers the A) fixed costs only B) desired ROI and selling and administrative expenses C) desired ROI and fixed costs D) desired ROI only Q9: Which one of the following is correct concerning a budget period? A) A budget must be prepared for a one year period B) A budget can be prepared for any period of time, but once that period has been adopted it cannot be changed C) A budget can be prepared for any period of time D) A budget is prepared to summarize the organization's activity for the month, quarter, or year just completed Q10: Which statement about the cash budget is correct? A) It can indicate when sales are insufficient B) It can show managers when the company will experience a net loss C) It can show managers when additional financing will be necessary D) It is also called the statement of cash flows Q11: In a cost centre A) managers are expected to control all direct costs and the contribution margin that they provide B) managers are expected to control all costs, including allocated costs from head office C) managers are expected to control costs directly under their control D) managers are expected to control all costs and sales from their division