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The Fixed Budget Performance Report of Discount Sale Pty Ltd

Question 2

Multiple Choice

The fixed budget performance report of Discount Sale Pty Ltd for the year ended 30 June 2011 shows budgeted manufacturing costs of $420 000 and actual manufacturing costs of $370 000.The favourable variance of $50 000 must have been due to:


A) Cost factors
B) Poor budgeting
C) Lack of supervision of workers
D) Cannot be determined from the information provided

Correct Answer:

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