1. A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget. True False 2. A materials price variance is favorable if the actual price exceeds the standard price. True False 3. Which of the following do managers most frequently use as a system to identify deviations in conjunction with the variance analysis cycle? Traceable fixed costs. Management by exception. Incremental analysis. Variable expense ratio. 4. All of the statements are correct except: more than one cost driver might be needed to adequately explain all of the costs in an organization. flexible budget preparation is limited to two cost drivers. cost formulas based on more than one cost driver are more accurate than the cost formulas based on just one cost driver. when cost formulas are based on more than one cost driver, the variances will also be more accurate