" 1. A budget generally includes only the financial aspects of management's plan. Answer: _V OR F 2. The benefit of engaging lower level management in the budget preparation process is that it helps to streamline the budget process. Answer: V ORF 3. A budget is a communication aid, informing staff of expectations and providing information that is essential to coordinating what needs to be done to implement the proposed plan Answer: V OR F 4. Budgets are sometimes called targets or commitments by some companies and as such are "set in stone" to provide effective benchmarks for management Answer:_V OR F 5. For revenue items, a favorable variance means that actual revenues are less than expected. Answer:_V ORF 6. A variance is the difference between the actual cost for the current and expected (or budgeted) performance. Answer: _V OR F 7. Static-budget variance for operating income is calculated by taking a difference between static-budget operating income and actual operating income. Answer: _V OR F 8. The planning of fixed overhead costs differs from the planning of variable overhead costs in terms of timing Answer:_V OR F -YOR 7. Static-budget variance for operating income is calculated by taking a difference between static-budget operating income and actual operating income. Answer: _V OR F 8. The planning of fixed overhead costs differs from the planning of variable overhead costs in terms of timing Answer: V ORF 9. The flexible budget highlights the differences between budgeted costs and budgeted quantities versus actual costs and actual quantities for the budgeted output level. Answer: V ORF 10. Standard costing is a cost system that allocates overhead costs on the basis of overhead cost rates based on actual overhead costs times the standard quantities of the allocation bases allowed for the actual outputs produced. Answer: V OR F