Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) A flexible budget can be viewed as an extension of a company's master budget.
_____ b) The master budget is a static budget because it generally is prepared for a single volume of activity.
_____ c) Standards are established for a company's costs but not for the selling prices of its goods and services.
_____ d) If direct materials are budgeted at $34,000 for 10,000 units, direct materials would also be budgeted at $34,000 for 11,000 units.
_____ e) Flexible and static budgets use different per unit standard amounts for variable costs.