33. Variance analysis should be used a. b. c. d. as the only source of information for performance evaluation. to understand why variances arise. to encourage employees to focus on meeting standards. to administer appropriate disciplinary action to employees that do not meet standards. 34. Because of the impact of fixed costs in most businesses, standard costing system is usually not effective unless the company also has a flexible budgeting system. In flexible budgeting, a. b. c. standard costs are used to prepare budgets for multiple activity levels. standard costs are never used. variable costs and fixed costs show the same behavior as budgets for different activity levels are prepared. d. a budget for an expected activity level is prepared showing variable and fixed costs separately