Question 26 :If costs are not responsive to changes in activity level, thenthese costs can be best described as
 options:

mixed.

variable.

fixed.

flexible.
Question 27: A flexible budget
 options:

cannot be used for evaluation purposes because budgeted data are adjusted to reflect actual results.

is prepared when management cannot agree on objectives for the company.

projects budget data for various levels of activity.

is only useful in controlling fixed costs.
Question 28 : Carlson, Inc. prepared a 2014 budget for 125,000 units of product.Actual production in 2014 was 130,000 units. To be most useful,what amounts should a performance report for this companycompare?
options:

The actual results for 130,000 units with last year's actualresults for 134,000 units

The actual results for 130,000 units with a new budget for 130,000units.

The actual results for 130,000 units with the original budget for125,000 units

It doesn't matter. All of these choices are equally useful.
Question 29 The flexible budget
options:

is a series of static budgets at different levels ofactivity.

is relevant both within and outside the relevant range.

eliminates the need for a master budget.

is prepared before the master budget.
Question 30 :Which one of the following would be the same total amount on aflexible budget and a static budget if the activity level isdifferent for the two types of budgets?
options:

Variable manufacturing overhead

Direct labor cost

Direct materials cost

Fixed manufacturing overhead