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    Managerial Accounting Study Set 23
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    Exam 10: Standard Costs and Variances
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    If Demand Is Insufficient to Keep Everyone Busy and Workers
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If Demand Is Insufficient to Keep Everyone Busy and Workers

Question 262

Question 262

True/False

If demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U) variable overhead efficiency variance often will be a result unless managers build excessive inventories.

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