The Variance That Is Usually Most Useful in Assessing the Performance

question 140

Multiple Choice

The variance that is usually most useful in assessing the performance of the purchasing department manager is:

• A)the materials quantity variance.
• B)the materials price variance.
• C)the labor rate variance.
• D)the labor efficiency variance.

Interpret various components of a flexible budget, including revenue, expenses, and net operating income.

Understand the concept of flexible budgets and their importance in performance management.

Interpret flexible budget variances, including spending and activity variances.

Calculate cost formula per unit and per activity measure from given data.

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