Which of the following statements is true

Which of the following statements is true

28.       Which of the following statements is true?

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A direct material quantity standard generally includes an allowance for waste.

An unfavorable labor rate variance can occur if workers with high hourly wage rates are assigned to work on products whose standards assume workers with low hourly wage rates.

A)  Statement I

B)  Statement II

C) Neither statement is true.

D)  Both statements are true.

29.       Which of the following statements is true?

Fixed costs should not be included in a flexible budget since such costs are not likely to be controllable by managers.

The static budget should be used primarily to determine whether cost control is being maintained.

A)  Statement I

B)  Statement II

C) Neither statement is true.

D)  Both statements are true

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