Which of the Following Statements Regarding Tradeoffs Among Variances Is

question 103

Multiple Choice

Which of the following statements regarding tradeoffs among variances is true?

• A) Managers generally do not need to consider tradeoffs in variance analysis
• B) Managers may sometimes make tradeoffs between favourable and unfavourable variances
• C) Unfavourable direct material price variances often lead to unfavourable direct labour efficiency variances
• D) Favourable direct material price variances often lead to favourable direct material efficiency variances

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