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You manage a small for-profit rehabilitation center, one of a chain of six in your city (you manage only one of the six).Your budget is
You manage a small for-profit rehabilitation center, one of a chain of six in your city (you manage only one of the six).Your budget is flexible for case mix and volume. You learn that there's been a favorable total variance (TV) between budgeted and actual occupational therapy cost per visit. To retain the owner's approval of your job performance, would you rather that the variance was caused by a Price Variance (PV) or a Quantity variance (QV)? Why?
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