SECTION ATruel al6 E absorption cosing and vanatie costng a True b. False 1, In datermining cost of gods sad, tue somas ooig es an manufactured, but are considered an expense of the perod 3. In the absorption costing income statement, deduction of the cost of grods sdid from 4. On the variable costing income statement, variabie selling 2. In variable costing, fixed costs do not become part of the wst of gods a. True b. False sales yields contribution margin a. True b. False and administrative costs are deducted from contribution margin to yield manufacturing margin a. True b. False 5. The contribution margin and the manufacturing margin are usually equal a. True b. False 6. Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans a. True b. False 7. Budget preparation is best determined in a top-down managerial approach 8. A capital expenditures budget is prepared before the operating budgets 9. The budget procedure that requires all levels of management to start from a. True b. False a. True b. False estimating sales, production, and other operating data is called cor budgeting a. True b. False