Why is it useful to decompose a flexible budget variance
Question:
1. Why is it useful to decompose a flexible budget variance into a rate (price) variance and an efficiency (quantity) variance?
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Analysts project that the stock will be priced around $23.00 in one year. What is the expected return?
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Why might an analyst examining variances in the production area look beyond that business function for explanations of those variances?
How one might design a qualitative and a quantitative effort in support of the marketing of that product or service.
Why is it useful to decompose a flexible budget variance into a rate (price) variance and an efficiency (quantity) variance?
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