True or False

1. On a CVP graph for an unprofitable company, the total expense line will be steeper than the total revenue line.
2. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources.
3. In a job-order cost system, indirect labor is assigned to a job using information from the employee time ticket.
4. A spending variance is favorable if the costs in the Flexible budget are less than actual costs
5. In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by:
6. A cost can be direct or indirect. The classification can never change if the cost object changes.
7. Flexible costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets.
8. In a flexible budget, when the activity declines, the total variable cost also declines.
9. The Purchases Budget is typically prepared prior to the Sales budget.