Multiple Choice
If a variance analysis shows that operations are better than expected, managers should:
A) Do nothing
B) Revise standard costs to make them harder to achieve
C) Monitor quality to ensure it was maintained
D) Change the accounting records so that unrealistic expectations aren't imposed in future
Correct Answer:

Verified
Correct Answer:
Verified
Q43: The preparation of the flexible budget eliminates
Q44: Variances are differences between budgeted and actual
Q45: Variance analysis involves the steps listed below.
Q46: If actual costs are less than budgeted
Q47: Fickle Factory Ltd produces unique large
Q49: Managers should consider possible interactions between incentives
Q50: Fickle Factory Ltd produces unique large
Q51: The standard cost of fixed overhead is
Q52: In a production setting, the standard cost
Q53: To establish standard costs organisations need to