Indicate whether the statement Is true or false. The master budget of a small manufacturer would normally include all component budgets that unpack on the financial statements a. True b. False To determine cash payments for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable is added to the income tax expense. a. True b. False A decrease in the ratio of liabilities to stockholders' equity indicates an improvements in the margin of safety for creditors. a. True b. False While setting standards, managers should never allow for spoilage or machine breakdowns in their calculation. a. True b. False It is correct to rely exclusively on past cost data when establishing standards. a. True b. False The primary purpose of a stock split is to reduce the number of stores outstanding in order to entourage more investors to enter the market for the company's shares. a. True b. False Standards are set for only direct labor and direct materials. a. True b. False If employees are given bonuses for exceeding normal standards, the standards may be very effective in motivating employees. a. True b. False