Unfavorable flexible budget variances for costs do not necessarily mean that costs are mismanaged if ________.
A)actual wage rate increases for labor union workers are not reflected in standard wage rates
B)high quality materials were used to reduce waste
C)high quality materials were used to increase product quality
D)all of the above

Question

Quizplus · Accepted Answer

Unfavorable variances can occur due to factors like wage rate increases or using high-quality materials, which may lead to higher costs but not necessarily indicate mismanagement.

Unfavorable Flexible Budget Variances for Costs Do Not Necessarily Mean