true or false

21) Absorption costing should be used when making special order decisions.

22) When deciding whether to accept a special order, managers need to consider whether they have available excess capacity.

23) One of the key benefits of budgeting is that it forces managers to plan.

24) Budgeting is helpful to plan for cash inflows and outflows.

25) A favourable variance decreases operating income.

26) A standard cost is the budgeted cost for a single unit of product.

27) Choosing among alternative capital investments is called capital rationing.

28) IFRS requires that companies use capital budgeting techniques.

29) Self-scan check-out machines are an example of capital assets.

30) A labour time record identifies the employee and the amount of time the employee spent on a particular job.

31) The quantities of incoming shipments of raw materials are not counted but recorded on a receiving report.

32) A job cost record is used to record direct materials and direct labour. Manufacturing overhead is not recorded on a job cost record because it cannot be traced to a specific job.

33) Traceable fixed costs would not be eliminated if the segment disappeared.

34) Total manufacturing costs include direct materials, direct labour, and manufacturing overhead.

35) The operating leverage factor, at a given level of sales, indicates the percentage change in operating income that will occur from a 1% change in volume.