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Question - Please help with study guide from accounting II, discuss the development of standard costs, static versus flexible budgets, preparation of a master budget, and evaluating variances from standard costs.
1. What are the advantages and disadvantages of developing and using standard costs for performance evaluation?
2. We have covered operating and financial budgets. Which 3 budgets are the most useful and why? Explain the advantages and disadvantages of each of these 3 budgets.
3. Which 3 variances are the most useful for evaluating performance and why?
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