F5(part 4)

Semi-variable costs contain both fixed and variable components.

• TRUE

• FALSE

Contribution margin is the difference between sales revenue and fixed costs.

• TRUE

• FALSE

In make-or-buy decisions, fixed costs are always considered relevant.

• TRUE

• FALSE

The primary goal of outsourcing is to achieve cost savings and operational efficiency.

• TRUE

• FALSE

Outsourcing can reduce management's control over product quality.

• TRUE

• FALSE

Budget variances can indicate either inefficiencies or unexpected changes in business conditions.

• TRUE

• FALSE

Adverse labor efficiency variance suggests that less time was spent on production than expected.

• TRUE

• FALSE

Overproduction often leads to adverse material usage variances.

• TRUE

• FALSE

In TQM, allowances for defects contradict the philosophy of 'zero defects.'

• TRUE

• FALSE

Profit centers are accountable for both revenues and costs but not investments.

• TRUE

• FALSE