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Accounting
Flexible Budgets and Cost Variances: Please respond to one of the following:
Option 1
Suggest how management can use the real-time variance data analysis to improve operations. Evaluate the potential risk that management may encounter by relying on the real-time data, without further investigation.
Option 2
What are the reasons to use a flexible budget? What is the major distinction between a static budget and a flexible budget? Illustrate the difference using a real-world example.
Option 3
Suggest how management can utilize variance analysis in improving the efficiency of activities during the manufacturing process.
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