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1. can you explain why companies create Flexible budgets. What is the purpose and why do you think these budgets are helpful to businesses? 2.

1. can you explain why companies create Flexible budgets. What is the purpose and why do you think these budgets are helpful to businesses?

2. Why are separate price and quantity variances computed? What effect, if any, would you expect poor-quality materials to have on direct labor variances?

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