1. When managers use the process called "management by exception":

a. they take action when there is a variance of any size or amount between planned and actual results.

b. they take action when there is a significant variance between planned and actual results.

c. they are allowed to use standard costs rather than actual costs on financial statements issued to decision makers.

d. they are not required to compute the standard cost of making a product.

2. As of January 1, 2007, the Democratic Sales Company had an account receivable of P500,000. The sales for January, February, and March were as follows: P1,200,000, P1,400,000 and P1,500,000, respectively. Of each month's sales, 80% is on account. 60% of account sales is collected in the month of sale, with remaining 40% collected in the following month. What is the accounts receivable balance as of March 31, 2007?

a. P587,200

b. P480,000

c. P720,000

d. P600,000

3. How many equivalent units should Tei plan to produce in 2006?

Hanbin Company's 2006 budget contains the following information (in units) Beginning finished goods inventory Beginning work-in-process in equivalent units 10 Desired ending finished goods inventory 100 Desired ending work-in-process in equivalent units Projected sales for 2006 1,800 How many equivalent units should Hanbin plan to produce in 2006?

a .1,845

b. 1,800

c. 1,565

d. 1,815