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Chapter 2 5) Which of the following explains why managers compare the budgeted costs to actual costs? A) Managers only focus on the budgeted costs. B) Managers only learn how to make better decisions in the future. C) Managers know how well they did to control costs only. D) Managers evaluate how well they did to control costs and learn how to do better in the future. E) Managers never compare these costs. 6) Budgeted costs include: A) the costs incurred this year. B) the costs incurred last year. C) the planned or forecasted costs. D) the cost of a competitor. E) the costs incurred two years ago. 7) The broader definition of a cost object is: A) the higher proportion of costs that are direct costs and the managers are more confident in the accu- racy of the cost amounts. B) the lower proportion of costs that are direct costs and the managers are more confident in the accu- racy of the cost amounts. ") the higher proportion of costs that are indirect costs and the managers are less confident in the ac- curacy of cost amounts. D) the lower proportion of costs that are indirect costs and the managers are less confident in the accu- racy of cost amounts. E) the managers are never confident in the accuracy of cost amounts. 8) Financial accountants realize that a mixed cost is: A) a fixed cost. B) a cost with fixed and variable elements. C) a variable cost. D) always an indirect cost. E) only an indirect cost

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