True or False Indirect costs are usually included in the costs that are allocated to activity...

True or False

Indirect costs are usually included in the costs that are allocated to activity cost pools in an activity-based costing system

In the first-stage allocation in an ABC system, some costs may be allocated to a special cost pool that are not subsequently allocated to products or customers.

The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

A favorable spending variance occurs when the cost in the flexible budget exceeds the amount of that actual cost (i.e. the corresponding cost in the actual results).

If the required rate of return is 15% and the internal rate of return of a potential investment 10%, the company should deem the investment acceptable.

When cash flows are uneven and vary from year to year, the net present value method is harder to calculate than the internal rate of return method.

In capital budgeting computations, discounted cash flow methods assume that all cash flows occur at the beginning of a period.

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