1. An organization has just recorded an unfavourable direct material quantity variance. Identify the factors that could have caused this variance. (4 marks)

2. Strategy, plans and budgets are related to one another. Do you agree? Explain (4 marks)

3. The owner of a sole trader business was heard making the following remark: CVP analysis has little relevance for our business. We are not in business to break even, but to make profits. Do you agree? Explain your position. (4 marks)