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