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    Managerial Accounting Study Set 15
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    Exam 2: Flexible Budgets and Performance Analysis
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    If the Actual Level of Activity Is 4% Less Than
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If the Actual Level of Activity Is 4% Less Than

Question 86

Question 86

True/False

If the actual level of activity is 4% less than planned, then the variable costs in the static budget should be decreased by 4% before comparing them to actual costs.

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