True/False

____ 1. A process whereby the effect of fluctuations in level of activity is built into the budgeting system is referred to as flexible budgeting.

____ 2. The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called continuous budgeting.

____ 3. Normally standard costs should be revised when labor rates change to incorporate new union contracts.

____ 4. The relevant range is useful for analyzing cost behavior for management decision-making purposes.

____ 5. Standard costs should always be revised when they differ from actual costs.

____ 6. The capital expenditures budget summarizes future plans for acquisition of fixed assets.

____ 7. Because variable costs are assumed to change in constant proportion with changes in the activity level, the graph of the variable costs when plotted against the activity level appears as a circle.

____ 8. Total fixed costs change as the level of activity changes.