true or false

1. In practice, managers often choose a discount rate that is higher than the cost of capital.
2. Suppose that the actual cost of capital is 10 percent, but the firm chooses a discount rate of 18 percent. Managers of that company will be more likely to choose relatively short term investments.
3. Short-run decision making only involves short-run decisions that have nothing to do with the firm's overall strategy.
4. Comparing actual results with budgeted results on a periodic basis provides control in a budgetary system.
5. As output increases variable cost per unit will also increase.
6. Computing unit fixed costs may result in misleading information.
7. If variable expenses decrease and the price increases, the break-even point decreases
8. The impact on a firm's income resulting from a change in the number of units sold can be assessed by multiplying the unit contribution margin by the change in units sold assuming that fixed costs remain the same.
9. Common fixed expenses are the fixed costs that are traceable to the segments and would be avoided if the segment did not exist.
10. Operating leverage is the use of fixed cost to extract higher percentage changes in profits as sales activity changes.
11. A problem with directly comparing a static planning budget to actual costs is that this comparison fails to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled.
12. An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period
13. All other things the same, a decrease in average operating assets will increase return on investment (ROI).