1.Unit-level activities include (choose the most complete answer) A. Special Pro

Question

1.Unit-level activities include (choose the most complete answer)
A. Special Processing
B. Special Processing and Factory Supervision
C. Factory Supervision
D. Machine Setup
E. Machine Setup, Special Processing, and Factory Supervision

2.Which of the following statements is false?
A. Flexible budgets can be used when there is more than one cost driver.
B. The fixed component of a budget for a cost has no effect on its activity variance. mee
C. If actual activity exceeds budgeted activity.
the activity variance for an expense-will alwaye-be-umfavarable.
D. When there is a favorable spending variance. actual activity must be less that budgeted activity
E. To understand performance better, actual results should be compared to the flexible budget.

please explain. the answer of the mcq questions

Explanation / Answer

1) Option A is correct, That is Special processing.

Special processing is the only unit level activity and other activities like factory supervision,machine setup are the batch level activities, hence option A is correct.

2) Option A is false, since flexible budget can not be used where there is more than one cost driver, because flexible budget can not measure cost drivers, hence option A is false.

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