Indicate whether each statement is true or false.

1. DM price variance is favorable when the actual price is lower than the standard price/pound. ( )
2. DL rate variance is favorable when the actual rate per hour was greater than the standard rate per hour. ( )
3. The standard direct material quantity is the total amount of material the company actually used to produce one unit of finished product. (.............................................................................................................. )
4. The decision making process includes 4 steps. (...... )
5. Perfection standards assume that production takes place in the ideal world. ( )
6. Information is relevant to a decision problem when it has a bearing on the future and it does not differ among competing alternatives. (...................................................................................................................... )
7. Irrelevant future costs and benefits are ignored when analyzing alternative decisions. ( )