Multiple Choice $(1$ point each$)$:

Circle the best answer for each question.

Which of the following statements is TRUE conceming product costing systems?

A$)$ Companies that undercost products always sell products at a loss.

B$)$ Companies that overcost run the risk of losing customers.

C$)$ Undercosting or overcosting does not relate to product cost cross$-$subsidization.

D$)$ Peanut butter costing is another term for direct costing.

E$)$ Comparies that overcost will make more profit by passing along higher prices to customers.

One of the criticiams of traditional budgeting is not using bualgets to evaluate performance until the end of the budget periad. Which of the following proposals for change would address this criticiam?

A$)$ Link budgeting explicitly to strategy.

B$)$ Use Kaizen budgeting to guide areas for cost reduction before the end of the budget period.

C$)$ Inform employees of the need for continuous improvement in performance within the budget period.

D$)$ Balance financial aspects with non$-$financial aspects $($such as quality and time$).$

E$)$ Rely strictly on extrapolation of past performance.

The flexdble$-$budget variance measures

A$)$ what the costs and revenues should have been for the budgeted number of outputs.

B$)$ the difference between budgeted expenditures and actual expenditures for the budgeted number of outputs.

C$)$ the difference between budgeted and actual variable costs.

D$)[$expected expenditures for the actual rumber of outpute$]+[$the actual expenditures for the actual number of outputs$]$

E$)[$actual cost for the actual level of the reverue or cost driver$]-[$budget unit amount $x$ the actual level of the revenue or cost driver$]$

If budgeted machine$-$hours allowed per actual output unit equals $1\mathrm{.}0$ hour, and budgeted variable marufacturing overhead per machane$-$hour is $$200,$ what is the budgeted varable manufacturing overhe ad rate per output unit?

A$)$ $$100$

B$)$ $$200$

C$)$ $$300$

D$)$ $$400$

E$)$ $$500$