Question 1: Select either (T) or (F) for each of the following statements: (5 marks) (T) (F) Budgeting includes only the financial aspects of the plan and not any nonfinancial aspects such as the number of physical units manufactured. To create greater commitment to the budget, top-management should create the budget and then share it with lower-level managers. Simply because activity-based costing systems employ more activity-cost drivers they provide more accurate product costs than traditional systems. A key factor in controlling costs is focusing on the revenues a product or service generates. Costing systems with multiple cost pools are considered ABC systems. Measurement of cost behavior means understanding and quantifying how activities of an organization affect its levels of costs. During an engineering cost analysis, knowledge about new costs may be obtained from experiments with prototypes and the experience of competitors. When a company acquires all of the common stock of a subsidiary, the books of the subsidiary are no longer used. The break-even point is when enough units are sold that total contribution margin cquals total variable costs. (F) When an investing company owns less than 50 percent of another company, the companies must prepare consolidated financial statements. EEEEE . .. n n te. (10 markel