flexible budget Consider a manager who plOduces goods or services according to customer demand. The accounting library
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flexible budget Consider a manager who plOduces goods or services according to customer demand. The accounting library uses an estimate of total cost based on an LLA of TC = F + vq, where q is some aggregate measure of output. This is, of course, a flexible budget. Is the" flex" in the flexible budget useful in evaluating the manager?
If you know total cost, is it lilrely learning output will bring additional, useful information to the evaluation task? Carefully explain. Can the manager contlOl output?
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