1. For product-costing purposes, which of the following statements is true?
a. Under the absorption or full-costing approach it is necessary to "unitize" fixed overhead costs.
b. The amount of standard fixed overhead costs for product-costing and for control purposes is the same.
c. Only standard variable overhead costs are included since these costs change in response to cost drivers.
d. Standard costing is not permissible under generally accepted accounting principles (GAAP).
e. Total fixed overhead costs are applied to production (output) as a "lump-sum" amount.
2. The "risk-averse" manager will be improperly biased to:
a. Seek out decisions with uncertain outcomes.
b. Make risky decisions.
c. Avoid decisions with uncertain outcomes.
d. Maximize his or her own risk and minimize the company's risk.
e. Use resources beyond his/her control.