We have discussed the development of standard costs, static versus flexible budgets, preparation of a master budget, and evaluating variances from standard costs. Answer the following questions in simple/basic terms: Which 3 (and only 3) variances are the most useful for evaluating performance and why?

After you determine the three, explain each of the variances you select in a different section.

Notes for answer - Please list the three and then break them down into subsections seperately. There are a ton of answers to this question but all of them have 10ish answers so I am still confused. Thank you in advance.