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Question - Discuss what are the impact on variances in each of the following cases briefly:
1. Purchase of materials from new suppliers.
2. Purchases for the product are ordered by purchase department. Production department gets low quality material for production.
3. Product sales of a company has significantly reduced from 30 to 10%.
4. Production of units was more than budgeted.
5. As demands grows in the market, more number of intense competitors entered.
6. Production department not at best in using materials properly and not handling materials wisely.
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