Answer all (Write in box True or False )

1. Activity-based costing (ABC) allocates overhead to single activities cost pools and assigns the activity cost pools to products and services by means of cost drivers.

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2. Responsibility accounting involves accumulating and reporting revenues and costs on the basis of the individual manager who has the authority to make the day-to-day decisions about the items.

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3. Abnormal Process loss should not be allowed to affect the cost of production as it is caused by abnormal (or) unexpected conditions.

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4. Budgetary control consists of preparing annual budget reports that compare actual results with planned objectives.

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5. Horizontal analysis, also called trend analysis, is a technique for evaluating a series of data over a period of time to determine the increase or decrease that has taken place, expressed as either an amount or a percentage.

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6. Ratio Analysis expresses the relationship among selected items of financial statement data and financial ratios can be classified into ratios that measure the only liquidity ratios.

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