Units to be produced for the month of April would be Rs. 19,000 if opening inventory, closing inventory and budgeted sales were 4,000 units, 3,500 units and 20,000 units respectively.

True

False

Cost control technique is only effective when some form of standard can be set.

True

Flase

Flexible budget consists on several budgets.

True

Flase

Indirect material cost is included in factory overhead cost budget.

True

Flase

Cash budget is part of budgeted income statement.

True

Flase

Cost control technique is concerned with genuine cost saving even standards are challenged.

True

Flase

Production budget can be calculated as follows:
Sales budgeted + desired ending inventory – opening inventory

True

Flase

Under estimation of revenues and costs is budget padding.

True

Flase

Direct material budget, direct labor budget and factory overhead budget are part of budgeted income statement.

True

Flase

Direct material budget is part of budgeted income statement.

True

Flase

Cash budget is part of budgeted balance sheet.

True

Flase

Nature of flexible budget is dynamic.

True

Flase

Fixed budget is based on assumption and flexible budget is realistic.

True

Flase

Price variance can be calculated as follows as follows:
(Actual cost incurred - standard cost) x Actual quantity of units purchased

True

Flase