Company X has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

The most likely explanation of the above variances for Material A is that:

Question

Company X has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

The most likely explanation of the above variances for Material A is that:

Answer

higher-quality raw materials were used than were planned

Answer

a lower price than expected was paid for Material A

Answer

Material A used during September was €2 000 less than expected

Answer

none of the others

Answer

the company used a higher-priced supplier

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Company X has prepared the following flexible budget for August and is in the pr...

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