For each of the following statements, state whether the statement is true or false. Indicate your answer by writing “TRUE” for the correct statement and “FALSE” for the incorrect statement in your answer booklet.

Question

(i) Organizations which adopt environmental cost management principles are more likely to identify and take advantage of cost reduction and other improvement opportunities.

(ii) Management accountants use techniques such as break-even analysis to help predict the activity levels required to ensure a profit is achieved.

(iii) In accounting of joint products under market value methods joints costs will be apportioned to the products in the ratio of sale price of the respective individual products.

(iv) Absorption costing increases the possibility of underpricing.

(v) Budgetary control becomes more effective in a business with the use of standard costing.

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