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A. Amanager should subdivide the flexible-budget variance for direct materials into a price variance (that reflects the difference between actual and budgeted prices of diect
A. Amanager should subdivide the flexible-budget variance for direct materials into a price variance (that reflects the difference between actual and budgeted prices of diect matarials) and an efficiency variance (that reflects the difference between the actual and budgeted quantities of direct materials used to produce actual output). The individual causes of these variances can then be irvestigated, recognizing possible interdependencies across these individual causes B. Amanaget should subdinide the flexible-budgot variance for direct materials into a price variance (that refects the difference between actual and budgeted quantizies of Gred materials used to produce actual output) and an efficiency variance (that reflects the difference between the actual and budgated prices of direct materials) The inclidual causes of these variances can then be investigated, recognizing possible interdependencies across these individual causes. C. A flexbla budget variance for drect materials is based only on the price variance. Therefore, a manager should investigate the cause of this variance to gain insight and find ways to make improvements. D. A fexble badget variance for dired materials is baspd only on the efficiency variance. Therefore, a manager thould irvestigate the cause of this variance to gain insight and find ways to make improvements
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