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4 SCHOOL OF BUSINESS Variance Analysis Flex Budget and Activity Variances Q: What impact did a change in volume (activity) have on revenue, costs and

4 SCHOOL OF BUSINESS Variance Analysis Flex Budget and Activity Variances Q: What impact did a change in volume (activity) have on revenue, costs and NOI? "Price" constant Differences due to quantity (sales volume) What do we compare? Master Budget vs Flexible Budget BQ x BP AQ x BP

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