TRUE & FALSE QUESTIONS.

1. In marginal and absorption costing, variable factory overhead is treated as direct cost _______ 2 For decision-making, absorption costing is more suitable than marginal costing. _______ 3. Abnormal Costs are uncontrollable. _______ 4. At the breakeven point, the contribution available is equal to the total fixed cost. _______ 5. To achieve the anticipated targets, Planning, Co-ordination and Control are the important main tasks of management, achieved through

budgeting and budgetary control _______ 6. The balancing in costing profit and loss accounts represents under or over absorption of overheads. _______ 7. Profit Volume ratio remains constant at all levels of activity. _______ 8. Although financial and managerial accounting differs in many ways, they are similar in that both rely on the same underlying financial data. _______ 9. When managers are carrying out their planning activities, they will select a course of action and specify how the action will be implemented. _______ 10. A cost incurred in the past that is not relevant to any current decision is classified as differential cost.