To Make Sure That Managers Interpret Variances Correctly and Make

question 99

True/False

To make sure that managers interpret variances correctly and make appropriate decisions based on them,managers need to recognise that variances cannot have multiple causes.

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Definitions:

Demand

The desire of purchasers to buy a certain good or service, combined with their ability and willingness to pay for it.

Price

The monetary value assigned to a product or service for purchase.

Good Bought

Refers to a product or service that has been purchased by a consumer or organization.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market situation.