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Variances for Variable Costs Will Be Misleading When the Planned

Question 3

Multiple Choice

Variances for variable costs will be misleading when the planned output differs from budgeted output.A solution to this problem would be


A) to use a stricter budgeting process.
B) to use flexible budgeting.
C) to better predict the final output.
D) to allow more judgement involve in the budgeting process.

Correct Answer:

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