Which of the following statements is true regarding absorption costing? It assigns all manufacturing costs to products It is not permitted to be used for financial reporting. It is not permitted to be used for tax reporting. It is a not the traditional costing approach. A performance report compares the differences between: Actual results over several periods. Actual results and predicted results. Predicted results over several periods. Predicted results over several levels of activity. Standard costs are used to measure: Price variances. Quantity variances. Price and quantity variances. Price, quantity, and sales variances. Effective budgeting requires all of the following except: Attainable goals. Determination of budgets by top levels of management. Evaluation processes that provide opportunities to explain any failures Clear communication of all budgets. Which department is often responsible for the direct materials price variance? The accounting department. The production department. The purchasing department. The finance department. The usual starting point for preparing a master budget is forecasting or estimating: Expenditures Sales Production Income Which of the following statements is true? Absorption costing treats fixed overhead as a period cost. Absorption costing treats fixed overhead as an expense in the period it is incurred. Variable costing treats fixed overhead as a period cost. Variable costing excludes all overhead from product costs