A Business Plan Must Be Thought of as a Work

question 32

True/False

A business plan must be thought of as a work in progress because nothing goes according to plan.

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Definitions:

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials used in production and the standard cost, indicating how much more or less was spent than expected.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Flexible Budget Sales

Projected sales figures that can adjust based on changes in production levels or market conditions.

Actual Sales

Revenue generated from goods sold or services provided in a particular period, factually recorded.