9) The usual starting point for preparing a master budget is forecasting or estimating A) Production. B) Expenditures. C) Income. D) Cash payments E) Sales. 10) The following information was taken from the production budget of Piwte Corporation for next quarter: January February March Units to be produced Desired ending inventory of finished goods 128,000 140,000 152,000 30,000 36,000 38,000 How many units is the company expecting to sell in the month of February? A) 132,000 B) 135,000 C) 138,000 D) 134,000 11) In a flexible budget, what will happen to fixed costs as the activity level increases? A) The fixed cost per unit will decrease. B) Fixed costs are not included in a flexible budget. C) The fixed cost per unit will remain unchanged. D) The fixed cost per unit will increase. 12) An analytical technique used by management to focus attention on the m less attention to the areas where performance is reasonably close to standard is known as ost significant variances and give A) Management by variance B) Management by exception C) Controllable management. D) Management by objectives. 13) Which of the following may appear on a flexible budget performance report? A) A favorable revenue variance. B) An unfavorable spending variance. C) An unfavorable activity variance. D) All of the above may appear on a flexible budget performance report