Indicate whether the following statements are ‘True’ or ‘False’.

(i) Profit variance is explained by total cost variance and total sales variance.

(ii) Profit variance is explained by total cost variance, sales price variance and sales volume variance.

(iii) Sales mix variance originates when the proportion of actual units sold differs from the standard proportion.

(iv) The basis of determining sales volume variance is the same whether it is a part of profit variance or sales variance.

(v) The basis of determining sales volume variance differs when it is a part of profit variance and when it is a part of sales variance.

(vi) If profit variance is unfavourable, it implies that its all sub-variances are also unfavourable.

(vii) A good management reporting system requires that significant variances only should be reported.

(viii) Tabular format is the more effective method of reporting variances than control chart.

(ix) Cost variances can be disposed off by following either of the two methods. The firm has an option of exclusive adoption of one or another.

(x) Variances can be disposed off by transferring to profit and loss account. This method is appropriate if standards are current and attainable.