Which of the following statements is false? Multiple Choice:
- Flexible budgets can be used when there is more than one cost driver (i.e., measure of activity).
- To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity.
- Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control.
- If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance.