Which of the following budgets is not specifically dependent on the short-run production budget? A. Direct materials budget. B. Direct labor budget. C. Factory overhead budget. D. Capital expenditures budget. E. None of these.

The formula for calculating return on investment (ROI) can be reduced to: A. margin divided by turnover. B. sales divided by assets. C. income divided by sales. D. assets divided by income. E. None of these.

When used for performance evaluation, periodic internal reports based on a responsibility accounting system should not: A. be related to the organization chart. B. include allocated common fixed costs. C. include variances between actual and budgeted controllable costs. D. distinguish between controllable and noncontrollable costs. E. None of these.