Indicate Whether Each of the Following Statements Is True or False.The

question 138

Short Answer

Indicate whether each of the following statements is true or false.The difference between the actual fixed costs and budgeted fixed costs is the spending variance.For fixed costs, there is no flexible budget variance.While total fixed cost does not change in response to changes in the volume of activity, fixed cost per unit does change.To monitor the effects of volume on fixed cost per unit, companies calculate a fixed cost volume variance.The fixed cost volume variance is favorable if actual volume is less than planned because cost per unit is higher than expected.

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Definitions:

Three Mile Island

The site of a significant nuclear power plant accident in Pennsylvania, USA, in 1979, which resulted in a partial meltdown but without immediate casualties; it raised concerns about nuclear energy safety.

Church Committee

A U.S. Senate committee in the 1970s that investigated abuses by the CIA, FBI, NSA, and other intelligence agencies, especially regarding domestic spying.

Pentagon Papers

A classified study of the Vietnam War that was leaked in 1971, revealing government deception regarding the war's conduct and sparking a major freedom of the press controversy.

Proposition 13

A landmark 1978 California ballot initiative that reduced property tax rates on homes, businesses, and farms by assessing property values at their 1975 value and restricted future increases.