True or False Questions:

33. The participative budget can be a very effective control device in an organization.

37. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is.

43. Most organizations that use ABC have two costing systems-the official costing system, which is used to prepare external financial reports, and the ABC system, which is used for internal decision making and for managing activities.

46. Opportunity costs are recorded in the accounts of an organization.

53. Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.