7. Most b) a c) the ideal level. d) last years level. level. 8. A managerial accountant 3. a) 1 b) 2 c) 3 d) 2 and 3 provides input of historical costs to the standard setting procss. 9. Under absorption costing and variable costing, how are fixed manufacturing costs treated? a) Product Cost b) Product Cost c) Period Cost d) Period Cost Product Cost Period Cost Product Cost Period Cost 10. Fixed selling expenses are period costs under neither absorption nor variable costing. b) e) under absorption costing, but not under variable costing d) under variable costing, but not under absorption costing. 11. Why are budgets useful in the planning process? a) They provide management with information about the company's past performance. b) They help c) They guarantee the company will be profitable if it meets its objectives. d) They enable the budget committee to earn their paycheck goals and provide a basis for evaluation. 12. A budget a) is a substitute for management c) can operate or enforce itself. d) is the of the 13. Accounting generally has the responsibility for a) setting company goals b) expressing the budget in financial terms c) enforcing the budget d) administration of the budget. 14. Budgeting is usually most closely associated with which management function? a) Planning b) Directing c) Motivating d) Controlling