TRUE OR FALSE

__16. The prime costs of manufacturing are direct labor, direct materials and manufacturing overhead. 17. Budgeting is usually more effective when all departments are involved in the budgeting process. 18. The definition of a mixed cost is an expense that is partly a production and partly an administrative cost. 19. The production budget is based upon the sales budget and the company's desired inventory levels. 20. A budget performance report shows budgeted amounts, actual amounts, and the differences between them. _21. If a preferred stock is cumulative and dividends are in arrears, it must receive that amount before any current dividends can be paid. __22. An example of a production cost would be sales commissions. 23. Direct material is not easily traced to a product and therefore it needs to be allocated to each unit. _24. Partially completed inventory is called Work-in-Process. _25. A manufacturing company can have three inventories: raw material, work-in- process and finished goods. _26. The higher the contribution margin per unit, the lower the number of units that need to be sold to breakeven. __27. If fixed costs increased from one year to the next, the contribution margin would decrease. 28. The par value of capital stock is its selling price. 29. A fixed cost decreases per unit with an increase in activity. 30. A strength of the high-low method is that it utilizes both the high AND low point of a fixed cost