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Under What Condition(s) Might a Favorable Variance Be Considered Unfavorable

Question 48

Multiple Choice

Under what condition(s) might a favorable variance be considered unfavorable?
I.When a manager overproduces to fully utilize labor in a non-bottleneck department
II.When a manager buys a better quality materials at a cheaper price


A) I only
B) II only
C) Both I and II
D) Neither I nor II

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