A number of terms are listed below:

Required
Select the terms from the above list to complete the following sentences.

The question is whether or not the actual results met expectations, exceeded expectations or failed to meet expectations and a ______ will respond to this question. A ______ is the result of subtracting the budgeted or predicted outcome from the actual outcome. A ______ means the effect of the variance is to increase operating income. An ______ means the effect of the variance is to decrease operating income. A ______ simply fails to reflect the routine effect of changes in quantity produced and sold on the revenue and the variable costs. A ______ does reflect the routine changes to be expected when the quantity produced and sold fluctuates from what was predicted. The ______ permits more ______ in the report of non-routine variances and ______ . The ______ plus the ______ equals the ______.
When quantities of direct materials purchased and used differ from budget, the variance can be the result of either a ______ ______ arising in an unexpected difference in the cost/unit or an efficiency variance arising from an unexpected difference in the quantity of the input used, or a combination of both. When a direct materials ______ has ______ both the ______ and the ______become important. These elements of a Level 4 analysis permit the managers to assess how changes from what was expected affected the ______ .