1. Most companies that use standards set them atA) the normal level.B) a conceiv

1. Most companies that use standards set them atA) the normal level.B) a conceivable level.C) the ideal level.D) last year s level.2) Which of the following statements is trueA) Variances are the differences between total actual costs and total standard costs.B) When actual costs exceed standard costs the variance is favorable.C) An unfavorable variance results when actual costs are decreasing but standards are not changed.D) All of the above are true.3. A project with a zero net present value indicates that it isA) unacceptableB) profitableC) acceptableD) going to have an acceptable cash payback period.4. Intangible benefits in capital budgetingA) should be ignored because they are difficult to determine.B) include increased quality or employee loyalty.C) are not considered because they are usually not relevant to the decision.D) have a rate of return in excess of the company s cost of capital.