Question $1(10$ marks; $18$ minutes$)$

Indicate whether the following statements are true or false.

$1\mathrm{.}1$ For planning and control purposes, fixed overhead is not included in the standard cost per unit because it is incurred based on the number of units produced.

$1\mathrm{.}2$ To redesign processes to be more effective is not an objective of responsibility accounting.

$1\mathrm{.}3$ Price skimming occurs in the maturity stage of a product life$-$cycle.

$1\mathrm{.}4$ The advantage of using economic value added in performance measurement over return on investment is that it encourages investments that are profitable to the company.

$1\mathrm{.}5$ The expected value is a measure of uncertainty.

$1\mathrm{.}6$ When budgets are used for control, budgeted amounts are compared to actual amounts.

$1\mathrm{.}7$ When a computer company targets customers in the South, it is following a strategic positioning strategy.

$1\mathrm{.}8$ The opportunity cost approach to setting a transfer price would set the minimum transfer price as the opportunity cost of the selling division.

$1\mathrm{.}9$ If a cost is identical under each alternative under consideration within a given decision context, the cost is considered an alternative cost.

$1\mathrm{.}10$ The mark$-$up can be calculated using a variety of bases.