QUESTION 1

1. Which of the following statements is not true about the Direct Labour Budget?

   		. If properly used it would assist in reducing inefficiency on the part of employees.
   		It is developed after the Production Budget.
   		Output from this budget is used in the Selling and Administrative Expense Budget.
   		Output from this budget is used to determine the cost of goods manufactured)

1 points

QUESTION 2

1. Which is NOT one of the differences between relevant and irrelevant costs?

   		Relevant costs do not differ under different alternatives.
   		Some irrelevant costs are related to the past.
   		Relevant costs are avoidable or can be eliminated by choosing one over another.
   		Relevant costs must be considered in making decisions while irrelevant should not

1 points

QUESTION 3

1. A reason that a firm might choose to maintain centralized decision-making instead of decentralizing would be:

   		cost duplication resulting from decentralization.
   		the increased cost necessary to support expert knowledge in a centralized environment.
   		the training that is provided to lower management by decentralized operations.
   		the superior customer relations which typically result from centralized operations.