4. Evaluating a manager's performance in controlling variable costs is effectively achieved using a static budget. marshes rum Pinalmypooh 5. A flexible budget should be prepared for each of the types of budgets included in the no master budget.no Ki as lo smouni ord al groom lau 6. Flexible budgeting relies on the assumption that unit fixed costs will remain constant within the relevant range of activity.emo 7. The amount of fixed costs which appear on the flexible budget is the same as those Is appearing on the master budget. 8. The activity index used in preparing a flexible budget should be the basis of the variable costs that are being budgeted. 9. A formula used in developing a flexible budget is: Total budgeted cost = fixed cost + (total variable cost + activity level). forq 10. A flexible budget report will compare actual costs with the budgeted costs at the actual activity level achieved. 11. Management by exception means that management will investigate all areas where actual results are greater than planned results. woll It 12. Policies regarding when a difference between actual and planned results should be oh investigated are generally more restrictive for controllable items than for noncontrollable items. 13. Under responsibility accounting, both controllable and noncontrollable costs receive the same attention. an vnagrano silt of in 14. Cost centers are not classified as responsibility centers since there is no revenue responsibility. 15. More costs become controllable as one moves up to each higher level of managerial responsibility. 16. In a responsibility accounting reporting system, as one moves up each level of responsibility in an organization, the responsibility reports become more detailed. 17. Return on investment is the primary basis for evaluating profit and investment center managers. 18 Recidy